The Mayor’s Plan B is SOB

It is an understatement to say that up until the last few weeks there has been no sense of urgency to resolve the structural deficit of the city.  The City Council has been content to trim around the fringe.  The suggested layoffs are no where near as draconian as some have claimed – many of [...]

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CalPERS Woes Continue: Will Fund Gamble To Recover Lost Ground?

CalPERS continues to be plagued by losses in the private equity investment sector, but that is not the whole story. Aside from investing in companies doing business in Iran, the San Francisco Chronicle reported CalPERS’ involvement in real estate projects have not only lost money for the fund, but have had adverse consequences as well [...]

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State Attempting to Defer Payments to Local Governments

A bill that could delay state payments to schools and local governments should be on our radar scope.  I don’t know if the City Council or the LAUSD are considering the impact. The State Senate passed the bill overwhelmingly, but the Assembly Republicans want to take a harder look at it.  I have to say, [...]

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The Parallel between LA and the Hummer

I came across this article about the demise of GM’s Hummer.  An attempt to sell the line to China failed; GM has decided to end its production. The article contains a very notable quote: “It looks like the start of an age when we need to measure ourselves afresh — and maybe start to resize America.” [...]

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The City Council Is Still in Denial

The City Council is still grasping at straws, perhaps grasping at smoke, trying to avoid the reality of major reductions in compensation and benefits costs – either layoffs, concessions or some combination of the two. Instead, they are considering cuts to vendor contracts as yet another means of pushing the problem on the private sector.  However, [...]

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Not Doing the Right Thing Because It Is the Wrong Thing

The Sacramento Bee is reporting that both Schwarzenegger and Whitman are backing away from the ballot measure designed to cut state pension costs. According to the article, ”… political consultants from both major parties said Republicans were worried such a measure simply would mobilize public employee unions and bring more liberal voters to the polls in [...]

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The Winter Olympics- A Video History

The games have really changed.  This video takes you through 1968 – and Peggy Flemming.

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I Discussed DONE and Proposed Asset Sales on the Kevin James KRLA Show

I discussed the City Council’s attack on DONE and the proposed sales of city assets. Part 1 of 2: AudioPlayer.aspx?ContentGuid=622f68ac-3946-45c1-80c1-a66916d4b7cd Part 2 of 2: http://townhall.com/MediaPlayer/AudioPlayer.aspx?ContentGuid=b6570b9a-be1f-4c06-a7ce-4e35b4b8132e

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Garcetti, Alarcon and Perry in LA-LA Land about Credit Downgrade

S&P just downgraded the city’s credit rating today from double-A to double-A minus.  That could translate into an extra half-point in the interest rate for our borrowings.  That is a big deal and will cost the city millions, not just for now, but likely for months to come.  It’s the gift that keeps on giving – [...]

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A Change in Topic

I need a break from the gloomy news of financial distress, so allow me to take a wide detour and shift the subject to the Olympics. Evgeni Plushenko, the Russian silver medalist in men’s figure skating, is winning the gold medal for whining.  He claims because American Evan Lysacek did not attempt a quad and he [...]

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