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Yesterday, San Bernardino became the third city since the end of June to file for bankruptcy. The largest of the filings was Stockton, California, who had to take out a $121 million loan to pay for pensions.Now, Oakland is looking to borrow $211 for its serious pension issue, something that is seemingly becoming commonplace in California.
As the Wall Street Journal reports, some investors see this as a “serious red flag.” And how could they not? After a series of bankruptcies in the state and numerous other cities teetering on the edge of insolvency, the odds of Oakland experience a Stockton-like situation just took a big jump upwards.