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Lessons Learned From Stockton Bankruptcy

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  • Description

    FBN’s Stuart Varney sounds off on the bankruptcy of the California town.

  • Duration 2:12
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Here's my take on the bankruptcy of Stockton California and again I am indebted to the wall street journal of that detailed -- so much.

Go back just a few years and Stockton was a big -- -- 68 million dollars from hockey arena from minor -- team.

129.

Million -- waterfront development way out of line.

When the real estate bust hits Stockton collapsed it -- a quarter of its -- one studies fire fighters and slashed spending everywhere.

But there was one might and that -- and could not get to grips with.

Pensions the unions agreed only to be most money you know reforms.

Firefighters.

Can still retire at fifty and they do -- an average 157000.

Dollars in pension and benefits full life.

Every yeah.

No matter walked.

No matter what it promised Stockton cannot pay.

Can't pay pensions like -- A bankruptcy judge we'll have to pick over the caucus and decide who gets walked.

Now this sends a very ugly message to state retirees all over the country you may not get -- you're expecting.

It's and -- -- message for families.

-- education health services are in jeopardy.

And it's -- all -- message for youngsters you may be laid off or not hide in the first place if we keep transferring wealth.

To pensions the glory days of public sector growth and generosity all over analyze overstating the case smoke -- I think so I think you run out of other people's money.

Yeah I mean that that's basically the problem it would be to people argue that.

You know it it was a promising said no it was a lot you know there was just no way to continue to collect to pay this money and it is unfortunate.

And I do feel bad for people you know these are brutal and work being promised that they were gonna get as -- that's not right make no mistake especially firefighters who risked their lives it's wrong.

This is wrong to do it.

Authorities say -- I I have a hogs I know I have morality deep down I know you have -- To -- you can't have a just society unless everyone shares in the rewards and if they're disproportionately.

Offered to retirees.

It's not a fair or economically viable society -- Bible doesn't work.

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