*Barney Frank wants US to be monoline insurer for municipal bonds. Somebody shut him up. If you think it can't happen, guess again. Orange County CA went bankrupt in the 90's because of financial products from Merrill Lynch, who weren't allowed to sell any products for ten years and guess who went right back in after ten years was up. True, all true.
Chip Johnson
Tuesday, June 9, 2009
Even though city officials would prefer to avoid a public conversation, behind closed doors the Oakland City Council has discussed filing for bankruptcy protection in the midst of a $100 million budget deficit.
"We have asked the (bankruptcy) question because we wanted to know the impact," said District 5 council member Ignacio De La Fuente. "In closed session, the question has been asked, and an answer was given." He would not elaborate.
"It's a possibility," he acknowledged. "Things are that bad."
Council President Jane Brunner was equally aloof. She ably acknowledged the city's dire financial problem while managing to avoid the b-word altogether.
"We're going to try to avoid it, but am I going to say it would never happen? I can't say that," Brunner said. sfgate.com
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