California Going Bankrupt!

Throughout the state, local governments are cutting services to avoid bankruptcy but for some it's too late. San Bernardino on Tuesday became the third city in the state to seek bankruptcy protection in the last month. Michael Coleman, a fiscal policy advisor for the California League of Cities, insists:

"'There are likely to be more (cities to declare bankruptcy) in the future, but it's hard to know, since a lot of struggling cities may manage to work things out… Some cities may not go into a bankruptcy, but they may dissolve. They may cease to exist.'"