Guess Who’s Pulling the Strings Here?

 

Stockton Bankruptcy Puts Muni Market on Edge – WSJ.com.

Stockton is attempting to screw their bondholders in order to continue paying fat benefits to their retired workforce. I do not think a bankruptcy court will allow this, and benefits will eventually have to be pared down. In the meantime, you just told the financial markets that you will place political interests ahead of good financial managements. Good luck  borrowing money in the future.

 

 

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