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San Bernardino's council has passed a budget that will allow the bankrupt Californian city to...

San Bernardino's council has passed a budget that will allow the bankrupt Californian city to restart $1.2M in biweekly employer contributions to Calpers while continuing to renege on its commitments to its other creditors, including bondholders. Along with Stockton, San Bernardino represents a test case over who should get paid first when a municipality goes bankrupt - the public employees or the bondholders. (previous)
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Comments (4)
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    California dream'in?
    23 Apr 2013, 06:06 AM Reply Like
  • phertz1
    , contributor
    Comments (39) | Send Message
     
    Many city council members in these medium size cities in California eat like pigs at the trough. But its the trough of poltical contributions from the police and fire unions, the city workers unions, etc. Even in a bankruptcy, it behooves the councilmembers to not bite the hand that feeds the re-election. Jesse Unrah, former speaker of the state assembly said it best, "Money is the mothers milk of politics!" Only a federal judge will be able to defend the rights of bondholders in states like California. Muni holders look out!
    23 Apr 2013, 12:55 PM Reply Like
  • bd4uandu
    , contributor
    Comments (1808) | Send Message
     
    The state needs a mammogram I think I feel some lumps. I hope it's not malignate.
    Muni-bonds with a ten foot pole I think not.
    23 Apr 2013, 01:03 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (959) | Send Message
     
    Hope they like high yields on their new debt.
    23 Apr 2013, 02:01 PM Reply Like
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