Yes, L.A. can go bankrupt

Nice to see my old pal Joel Kotkin on CNBC trying to counter the talking points of Mayor Smoothie concerning a possible L.A. bankruptcy (Villaraigosa's CNBC interview is over at LAO). Willy-nilly layoffs are clearly not the answer - actually, if you read the LAT story this morning, the process of who stays and goes is already turning into a joke. As Kotkin points out, the city is drowning in pension obligations that have been piling up over the years, thanks to public employee unions that practically run the city. And as was true for GM, there's nowhere near enough money to cover everybody.

"Caifornia and Los Angeles are joined at the hip with many of the same kinds of problems and they're both sinking into the swamp deeper and deeper."

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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