Tuesday April 6, 2010
From Mish's Global Economic Trend Analysis, Los Angeles is broke. I mentioned in class that this is an excellent time to be studying equity as there is so little of it! This is serious folks.
Los Angeles is in deep trouble. The situation has gotten so grim that the city controller says L.A. to Run Out of Cash in a Month.
Los Angeles will run out of cash on May 5, city Controller Wendy Greuel said today in a release in which she requested a $90 million transfer of reserve funds to pay bills.
“The question I have been asked most often during the budget crisis is, ‘When will the city run out of money?” Greuel said in the e-mailed release. “Unfortunately, we finally have the answer.”
Greuel, 48, said in the release that the city might not be able to make payroll. She asked Mayor Antonio Villaraigosa and the City Council to release $90 million from reserve funds to meet what she described as “an urgent cash need.” The controller’s financial reporting division estimated that the city would need $90 million to ensure solvency through the fiscal year that ends June 30, according to Golombek.
Professor Elam 
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