Officials from Stockton, California, pop. 292,000, say bankruptcy “the only choice left” after mediation with creditors failed. They tried austerity:
In the past three years, officials in the city that was slammed by the collapse of the housing market dealt with $90 million in deficits through a series of drastic cuts.
They eliminated one-fourth of the city’s police officers, one-third of the fire staff, and 40 percent of all other employees. They also cut wages and medical benefits.
Stockton is like Greece, except with more crime.
