L.A. City Credit Rating Drops
Standard and Poor's on Tuesday lowered its rating of the City's credit from "AA" to "AA-minus."
Evidently the City of Los Angeles is not bothered by the prospect of having it's bond ratings lowered. The City of Los Angeles must be counting on the bankrupt State of California and the bankrupt United States of American to bail them out. After all, isn't the City of Los Angeles too big to fail?
"It's going to cost us millions of dollars more to borrow as a standard way of operating," City Administrative Officer Miguel Santana said.
Don't you just love optimism.
As the City of Los Angeles continues to prove they would rather go bankrupt than balance the budget, the bond ratings will continue to plummet. Eventually, the the City of Los Angeles won't be able to borrow money (because nobody will want to loan them money). And if the the City of Los Angeles resorts to raising taxes enough, anyone with a job or money will leave the city. At which point, the most of the people left will be the politicians and government employees. The rest of the people left will be all the people on welfare or otherwise too poor and too uneducated to be able to leave the city for better opportunities elsewhere.
Thus the City of Los Angeles will be able to prove that balancing the budget is for wimps and weaklings.
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