paying more to the government so they can prop of the million or pensions of government workers. they basically have been sold allies about retirement security that may not be there when they are ready to leave the workforce. megyn: now they are talking about making that temporary income tax hike permanent. there are rumblings about thaas. illinois has dirty heads credit downgraded by standard & poor s. because of these retiree costs. they are in a lot of trouble. was that pat quinn in the video? no, i think that was a local actor. they did not put him in the video considering the feedback that the video has received. megyn: well, good old squeezy makes is going after all. christina, thank you for joining us. you are so welcome.
creditors on hundreds of millions of dollars of debt they faced the proper paperwork. jerry willis joins us to discuss this. how big is the stockton bankruptcy compared to other cities. reporter: it s the biggest every. vallejho filed back in 1978. this is a real benchmark now. this is a real turning point. i think you ll see more cities falling into bankruptcy. their general manager said yesterday our general fund is depleted. patti ann: other cities can avoid this. the big question, how did stockton get so deep in the hole? reporter: one big problem and i think you ve talked about this on your show before is that they have incredibly high retiree costs. people who serve the city as
union workers will not be recovered. we should remember chrysler or uaw union got 60 percent of chrysler and the other thing about chrysler, fiat is on the way to becoming the majority owner. our tax dollars was used to bail out a foreign company. u.s. taxpayer will lose two billion according to the treasury department . getting back to gm. gm lost money in the height of the bubble. they would not have happened if the collapse was wall street did not happen. the world credit markets collapsed because was home grown bubbles in spain, ireland and germany. even gm to this day has union retiree costs that is on the balance sheet. you have to say was it the right thing to do. two-thirds of the sales are coming from labor markets
have been strained by retiree costs. defaults will be unavoidable if congress doesn t change a law requiring the agency to contribute billions to retiree benefits every year. and a spokesman for congresswoman gabrielle giffords says the arizona democrat is regaining part of her able to speak. she s recovering from a brain surgery afs she shot in the head by a gunman in tucson. six people were killed in the shooting. i spokesman would only say she would ask for toast. this is such a great story. she s starting to speak. it s very good news. it s going to be a long process. let s hope she ll be back to normal sooner rather than later. thanks very much. the complicated past of egypt s vice president.
a 3.5 billion loss. mailing is down since 2007 and combine that with soaring retiree costs and they say they may not meet all of the 2011 obligations, and keep in mind that the postal service receives no tax dollars. it is six months probation for the former hot dog eating champion kobayashi, because he was charged with rushing the stage at the hot dog eating contest this past fourth of july, and he had been barred due to a contract dispute. he t he, the he tried to rush the stage. what does it say when the first lady takes a glitzy vacation to spain in this economy? jack cafferty has your mail. and jeanne moos takes a moes