For California's economic crisis will end soon. From the very bad debt laden U.S. state again received the bad news. About insolvency announced Stockton. It became the largest in the history of modern American city bankrupt.
Stockton — the county seat of San Joaquin. Located 85 miles from San Francisco. The city's population — nearly 300 million people, or twice as much as the previous record holder Vallejo (California, too), which collapsed in 2008 and became a symbol of the economic crisis. As it became known today adopted a new budget Stockton. The deficit of $ 26 million on its own will not be able to eliminate the city.
California remains the champion among U.S. states in the number of financial turmoil.
Several months, the administration has been negotiating with creditors to avoid bankruptcy but failed.
In recent years, the authorities have tried to save at all, first of all cut wages and benefits. As a result, Treasury has saved $ 90 million due to the economic condition of the city in recent times only worsened, unemployment reached 15.9%. Declaring bankruptcy and sending a request for protection from creditors, Stockton will rely on the approval of his economic program by the U.S. authorities.
However, the fact that Article 9 of the bankruptcy law to help defend the city. Recently, the U.S. Supreme Court refused for various reasons in the cities of protection from creditors. Municipalities rarely go bankrupt, so every business understands long and hard. Stockton residents are preparing for the worst.