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Corning -- the Securities and Exchange Commission sets it can't trust cities when it comes -- counting.
They don't believe it budgets or their financial valuations in -- regulators.
They give examples of how those numbers have been hidden or just simply misrepresented.
Here just three it reported to congress.
It's investigating -- -- turnpike authority for failing to disclose substantial cost overruns from that Big Dig project.
It's investigating the city of Syracuse, New York for falsely claiming a surplus.
In a San Diego the FCC set the city fell to disclose.
It's looming pension fund crisis.
-- -- ravaged former New York lieutenant governor joins us right now Richard.
You've got a lot of work and that's I know you've been very very busy on this.
Let's call what is essentially the cities in these minutes apologies have been lying about their financial conditions.
I don't think that is true I think there have been.
No rules or regulations that required.
Cities and states to provide those are probably had a surplus -- they did.
-- everything every week that this morning officially San Bernardino makes it official third third third say it is always have filed bankruptcy but I don't think the major problem is.
Our society as they're gonna be.
Massive defaults on the books are but these cities are being.
Honest there has been inadequate.
Disclosure is inadequate -- parents and there were -- no.
You -- rules and no regulatory system.
That will inform all holders of close to four trillion dollars.
A municipal securities what's really going on with the issue were those securities be biggest city BBA's -- Being able.
Trillion dollars because that is four trillion dollars for landlords that says they order Obama believes that hangs overhead in a bottom line is we can't trust these guys.
What do you call -- line it is disingenuous or just you know no no rule no rules of the road to follow though the bottom line that isn't -- this pose a gigantic risk to our country right now.
-- -- I think the risks to our country is that.
That states and cities are suffering from growing.
Deficits and they are caught in -- sensual.
Public services after remember under our constitution.
States are primarily responsible for public safety.
For education for health care for for the public infrastructure.
And it is those cuts -- 650000.
Few work state and local employees and their work three years ago that you be.
You think that we're running out of time so wanna ask this of solutions.
You think perhaps some on the SEC or someone like that should have general jurisdiction and that there should be uniform rules of the road.
And that would help a lot -- I believe that it would.
Help both -- respect of the integrity.
Of the information provided the people who buy these bonds and two it would help focus public attention on the fundamental budget problems the states and cities are -- -- before -- let you go dorm break we talked about a possible worst case scenario of these cities continue to fall on hard times and we're talking about chaos in the streets -- logic.
The risk of social discontent.
It is the greatest risk -- cities and states are forced to cut back on police and fire in health care.
I think we this society -- a lot of commitments without being prepared to pay for them.
Right okay -- them before I let you go on those commitments we can't pay form.
You know we made a mistake.
We're not gonna make 8% a year and in these investments that these guys thought they would make.
You were you've dealt with unions before and your roles as lieutenant governor.
Are they prepared to come to the table say you know what we understand that you made a promise to us but you can't -- it -- for the better good of society we're gonna change are what we want from you.
I think they should be prepared to do that as long as others -- -- of the table.
And put a piece of a bear.
Well being on the table as well I don't think the burden of solving those problems should be solely.
On the backs of public employees.
I think -- should be shared by everyone else in.
-- taxpayer Milligan attorney Richard.
I appreciate you coming on the show and in this is a gigantic topic for everyone and is -- something of a ticking time and we appreciate you working at time.
-- wanna get back now.
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