Photo: Wikimedia Commons
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.
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