Biggest Bankruptcy In American History

First there was Harrisburg, Pennsylvania. Then, Jefferson County,
Alabama. Now, hold onto your hats folks -- we could be just days away
from seeing the biggest municipal bankruptcy in U.S. history.

In California, the city of Stockton boasts a population of almost
300,000 ... and a fiscal emergency. The first number means that if
Stockton winds up filing for Chapter 9 bankruptcy protection, as its
officials are threatening to do, it will be the most populous U.S.
municipality ever to declare bankruptcy. And the fiscal emergency? Such
problems are going to become increasingly common as city after city
follows the downward path that Harrisburg, Jefferson Co., and Stockton
have blazed.

A city in decline

Eighty miles to the east of San Francisco, in the 19th century Stockton
was a hub of the California gold rush. But by the end of the 20th
century, a gold rush of a different sort had arrived. Amidst a
nationwide housing boom, Stockton rode high on a wave of mortgage
refinancings, building fees, and property tax collections. As the city's
vice mayor explained, money was "pouring into the city coffers for
development fees and permits. Property taxes were going through the
roof. It was boom time."

Then the Great Recession hit...

If Stockton does declare bankruptcy, it may be the biggest in U.S.
history -- but it won't be the last.

By Rich Smith


Please read the whole article at the link provided-

http://news.yahoo.com/biggest-bankruptcy-american-history-211237504.html