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IPFS News Link • Economy - Economics USA

Mish: L.A. Controller Says City Could Run Out of Cash by May 5

In the face of a crushing recession, the Mayor actually accelerated spending and hiring to the point that the City may have to declare BANKRUPTCY before the end of 2010. While he is now asking City officials to eliminate 1000 city jobs, the Mayor has selfishly refused to fire a single member of his enormous staff - including 16 Deputy Mayors and 93 personal staff members. In 2009, the Mayor offered a 3.9 BILLION dollar contract to the IBEW (Electricians Union) for the potential construction of solar panels. The no-bid contract, awarded without competition to his political supporters, creates the appearance of corruption and collusion, and would have increased costs for citizens of Los Angeles.