Stockton California Bankrupt

Stockton, California to become the largest city in the United States to file for bankruptcy.

After failing to strike a deal with city employee unions and other creditors, Stockton's city council passed a budget after a five-hour meeting on Tuesday night. The budget calls for an end to retiree healthcare benefits a year after the city files for bankruptcy, which is expected by Friday afternoon.

"I was amazed by the level of benefits we received," said former city planner Denise Jefferson. "It was ridiculous."

She now works for a business improvement district and sees bankruptcy as being necessary for Stockton. "I'm thinking 'Welcome to the real world,'" she said.

"For people who say, 'You can't do this,' I say show us the pot of money," she said. "There's no money."

ReasonTV