To: Uncle Chip
San Bernardino's case sets up a showdown between Calpers and other creditors, particularly Wall Street bondholders and insurers, over how they will be treated in the bankruptcy
We already have a pretty good inkling about how that will turn out. The treatment of the "secured" creditors of General Motors is the best example. There are more RAT pension votes than RAT bold holder votes.
We already have a pretty good inkling about how that will turn out. The treatment of the "secured" creditors of General Motors is the best example. There are more RAT pension votes than RAT bond holder votes.
Should do wonders for any future bond sales! Or will the reluctance to buy municipal bonds be branded unpatriotic?
posted on 11/27/2012 6:11:49 AM PST
(GOPe: Already prepping for their 2016 loss - Jeb Bush!)
Wall Street can crush California like a grape any time it wants - by refusing to buy any California debt paying less than 15%, due to excess default risk.
Of course, then Obama would probably just get Bernanke to start buying it, instead. :)
posted on 11/27/2012 6:15:48 AM PST
by Mr. Jeeves
This is a different scenario.
Here the bond insiders think they are entitled to 100% secured status regardless of the law.
There are no good guys here. Remember these are the thugs using bonds the way unions use strikes.
posted on 11/27/2012 9:32:09 AM PST
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