STOCKTON, Calif. – In the heart of Central California lies one of the hardest hit areas of the recession -- the city of Stockton.
And now Stockton is on the verge of becoming the largest city in the United States to declare bankruptcy. With nearly 300,000 people, to has the second highest rate of foreclosures in the country.
“The real estate market where we probably had the biggest price bubble collapse in the country. And that’s had a devastating impact on the city,” said Jeffrey Michael director of Business Forecasting Center at University of Pacific in Stockton.
Stockton is also in the top 10 U.S. cities for crime rate and the city was forced to make huge cuts by slashing 25% of its police force over the last three years.