Mounting State Debts Stoke Fears of a Looming Crisis

Mounting State Debts Stoke Fears of a Looming Crisis

Municipal bankruptcies or defaults have been extremely rare — no state has defaulted since the Great Depression, and only a handful of cities have declared bankruptcy or are considering doing so.

But the finances of some state and local governments are so distressed that some analysts say they are reminded of the run-up to the subprime mortgage meltdown or of the debt crisis hitting nations in Europe.

Analysts fear that at some point — no one knows when — investors could balk at lending to the weakest states, setting off a crisis that could spread to the stronger ones, much as the turmoil in Europe has spread from country to country.
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Governments in Europe and at all levels in the U.S. are reeling in red ink. While economic observers note consumer confidence and retail spending are up, reports like these as well as continued high unemployment demonstrate the ongoing powerful gravitational drag exerted by the implosion of the real estate bubble into a massive financial black hole in 2008.

First responders delayed by padlocked gates of Privatopian enclave

HOUSTON – A group of northeast Houston residents say they are holding a rally to protest the mismanagement of their neighborhood’s homeowners association.

The resident’s main concern is the locks that were placed on the subdivision’s gates that possibly created a delay for first responders.

Blouis Gipson, who recently lost his wife to a heart attack, said he wonders what would have happened if the Pine Village North subdivision had a different lock on the gates.

“I tried CPR and I called 911 immediately,” said Gipson.

But help was held up because the homeowners association had the gate chained shut with a lock, he said. A report from the fire department said the crew had to cut the lock off of the gate.

“By the time EMS got here, she had died,” said Gipson

There was a fire a few months ago that destroyed several town homes and the fire department was locked out, the residents said.
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Rest of the story here.

Sovereign Privatopia: Arizona HOAs claim jurisdiction over public streets

Homeowners and HOA Headaches

State Representative Nancy Barto describes HOAs as quasi-governments with deep pockets, lots of authority and little oversight. She tried to pass a bill to clarify who owns public streets: cities or HOAs.

"A lot of HOAs are run very well. This is not about most HOAs. This is about many HOAs," says Barto. "It becomes very evident that there's not enough oversight whenever there's a dispute, because homeowners have nowhere to go to solve these problems."

Attorney Scott Carpenter represents 3,000 HOAs and worked against Nancy Barto's bill.

"There is no story or evidence or statistics that I've seen that back up the assertion that associations are using fines for vehicles parked in public streets as a revenue generator," says Carpenter.

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This is one of the most nonsensical circumstances I've read emanating from Privatopia. A bill to determine whether municipalities or HOAs own public streets? Clearly the former; curious minds want to know why the state Legislature would be called upon to resolve that question. And why the munis don't take overreaching HOAs asserting bogus claims of jurisdiction over public rights of way to court and get a judge to order them to butt out.

HOA Activist Phil Testa murders wife, kills himself

Vegas Man Dies After Shooting Wife, Self - Las Vegas News Story - KVVU Las Vegas: "A Las Vegas man who shot himself after killing his wife was identified Monday as 74-year-old Phil Testa.
Testa died at University Medical Center after he was rushed to the hospital Saturday night.
Authorities said Testa shot his 79-year-old wife, Angelina, at the couple’s home on Maryland Parkway near Flamingo Road. He then called 911, saying he had killed his wife and was going to kill himself, according to police."
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And then he did kill himself.

Phil Testa was a long-time Las Vegas area HOA activist who at one time had a radio show there. He was fond of calling people crooks and other names, making thinly veiled threats, and claiming to have some sort of organized crime background. He liked to bum rush the stage whenever he could and snatch microphones from people's hands--things like that.