I have been suspecting this and I think you will see many municipalities filing for bankruptcy protection.
Jefferson County owes $ 4,000,000.000.00 in debt and the only way it can resolve this debt is to file bankruptcy. A Federal Judge more than likely will appoint an individual to work with creditors and to oversee the finances of the county. This is not a good situation for the county or the State of Alabama.
The only ones who will win in this situation are the attorneys for the county and the creditors. The small businesses that cater to Jefferson County will be out of luck and if most of their business came from the county they will have no choice but to close up shop.
Here is what I see happening. Many small businesses will start laying off employees or closing altogether. Since 29 states are under water this will be the first of many counties, cities, and townships filing for Bankruptcy Protection. There will be massive layoffs at the local and county levels, not to mention all of the supporting businesses who deal with those municipalities. The unemployment rolls will explode. The states and the federal government are not geared to handle this amount of unemployment. The states, counties, and the federal government are in trouble.
Do you think that all of the banks that we bailed out will now bail out the local municipalities?
So who is at fault here? One word Government, they spend too much, they support too many social programs, and they tax too much.
Maybe government officials will start to tighten their belts at all levels of government especially when they see that over half of the United States is either in or exploring Bankruptcy as an option.
No they will just increase your taxes. So what is the answer?
Start electing fiscal responsible candidates who are conservative in nature.
If you have good ideas on how to fix this problem or just want to comment let me know, I will publish them.