As in, iceberg dead ahead!
Lemer/Farb/Roberts assessment of City of Houston Finances (22 October 2009)
Bob Lemer has become known as a bit of a “disaster monger”, and has been about as welcome as a global warming skeptic at a Greenpeace convention. Unfortunately, he’s also correct, and he’s not pulling his punches.
The City of Houston is financially broke and it appears that the mayor who takes office in January 2010 may have to captain the City through bankruptcy procedures.
Well if that ain’t telling it like it is.
Ok, here is my non-accountant read on it: Yes, if we honestly ‘fess up to what the (out of date and UNaudited) books say, we are flat broke. As in, we have a negative net value. That’s not the same thing as bankruptcy though, and while he confuses the point deliberately, I think he’s doing it in good faith. Bob and his co-signers, Aubrey M. Farb and Tom Roberts, are trying desperately to turn the Titanic before we hit the iceberg.
I recommend the full read above, but if Accountant Math makes your head hurt, you may want to skim at least the first half. If that’s too hard for you, I have highlights for the really attention-impaired, presented somewhat out of order, below the fold.