ejhickey

Time for California Muni Bond Investors to Take a Stand

I wonder if the following scenario is possible.

California defaults on it's General Obligation bonds. Then the Federal Government decides to do a bailout for California and a reorganization of their finances. as part of this process, the decision is made to change the priority of the bondholders. Another possibility is the Feds decide to cancel all of the state's bonds and offers the holders 50 cents on the dollar. After the Chrysler Bankruptcy, I believe something like this might happen in regards to California Muni Bonds