Friday, April 5, 2013

What Stockton's Bankruptcy Means for the Rest of Us

What Stockton's Bankruptcy Means for the Rest of Us

So, confronted with an obligation to repay more than $200 million in loans to bondholders and more than $900 million to the California pension system for its current and former employees, and confounded by a serious reduction in real estate tax revenue, so serious that Stockton cannot afford to pay either the bondholders or the pension system, let alone both, the city that over-borrowed and over-spent and over-promised has sought the protection of a federal bankruptcy court.