Was on NPR last night. The largest community ever, 300,000 people declared bankruptcy. Was bound to happen when the pay and benefits are so excessive, but here is where it gets interesting. The bondholders are getting pennies on the dollar for investing in the city. Calpers? The Colorado version of PERA gets paid in full!
Remind anyone of the GM deal? Stockholders screwed, debt holders nothing, but the UAW gets to own a large percentage of GM.
Needless to say, the bondholders are seeking justice in the courts.
Thomas Sowell: There are no solutions, just trade-offs.
I think Blazer Bob posted something about this last spring. Massive, unsustainable benefits for public employees brought them down - not hard to see this coming. Spend, spend , spend - let this be a lesson.
Last year Forbes named Stockton the "Most miserable U.S. City"
