Aug 30, 2010
The city of Bell is in danger of bankruptcy – and not just because of the astronomical salaries of its officials. This small, working-class city near Los Angeles owes 35 million dollars – more than twice the city’s annual budget – to Dexia Credit by November 1.
Bell borrowed the money from Dexia in 2006, to buy some federal land for Burlington Northern Santa Fe Railroad. Burlington – owned by Warren Buffet – was supposed to lease the land. But after Bell bought the land, Burlington backed away from the deal. Taxpayers ended up with the debt.
Bell is not the first town which ran up enormous debts in the service of the wealthy class. It’s just one of the first where these debts have been so clearly exposed.
Where will the next domino fall?