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In the heart of central California allies want the hardest hit areas of the recession the -- stock -- And now Stockton is on the verge of becoming the largest city in the US to declare bankruptcy.
-- nearly 300000.
People they have the second highest rate of foreclosures in the country.
Real estate market where we -- had the biggest price bubble and collapse in the country.
And that's had a devastating impact from Citi revenues.
Stockton is also in the top ten US cities for crime rate the city was forced to make huge cuts by slashing 25%.
Of -- police force numbers pretty much speak for themselves a decrease in -- we'll definitely always increase crime there was a record number at 58 -- last year.
The police association -- -- that credible continue to increase that the budget is not fixed.
It's really the perfect storm fiscally for Citi -- and equate this dire straits that it has combined.
Both pro of the worst effects of the recession with.
Some other some of the riskiest.
Moves in its budget.
Over the last 25 years at Citi spent a lot of money did it hat.
We're generous -- -- -- compensation packages and -- projects like a waterfront park and -- arena and baseball park.
But I don't think they didn't full financial analysis on any of them.
The last ditch effort before claiming bankruptcy is a mandated mediation process with creditors and unions.
It's really means this is our last best -- tapped to avoid bankruptcy to avoid you know falling over the financial clip.
But bankruptcy might be inevitable Stockton folks -- survivors.
We have come through a lot of tough times we've come through a lot of difficult situations we've had branded with a lot of awful names.
To know what we stay true -- the course and believe and our city and the people who live.
In our city and keeping faith will help.
In Stockton California Michelle McAleese so foxnews.com.
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