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Bankrupt California City to Resume Paying Pension Fund, but Not Bondholders
Posted: Fri Apr 12, 2013 12:42 am
by Ad Orientem
LOS ANGELES (Reuters) - Bankrupt San Bernardino will resume paying into the state pension fund on July 1, but the California city will continue to renege on other debts including payments to bondholders, according to a new budget released late Thursday.
Read the rest here...
http://www.nytimes.com/reuters/2013/04/ ... rd.html?hp
Re: Bankrupt California City to Resume Paying Pension Fund, but Not Bondholders
Posted: Fri Apr 12, 2013 3:52 pm
by rocketdog
Exhibit #1 of why I'm not a big fan of municipal bonds.
Re: Bankrupt California City to Resume Paying Pension Fund, but Not Bondholders
Posted: Fri Apr 12, 2013 4:31 pm
by whatchamacallit
I heard they were thinking about doing this.
It seems like suicide for California. Why would anyone buy municipal bonds in other California cities now?
Re: Bankrupt California City to Resume Paying Pension Fund, but Not Bondholders
Posted: Sat Apr 13, 2013 11:42 pm
by clacy
whatchamacallit wrote:
I heard they were thinking about doing this.
It seems like suicide for California. Why would anyone buy municipal bonds in other California cities now?
Exactly what I was thinking. It will just speed up their reckoning day and make it a more severe transition.