“bankruptcy to avoid paying creditors?” Ain’t that what bankruptcy has always been?
“Ain’t that what bankruptcy has always been?”
Why, yes.
Popcorn, gotta break out the popcorn.
The welling point with municipal bonds has always been as a safe investment, and in return for a safer investment you would accept a lower rate of return.
The investors do have a legit grip, in that the city probably took advantage of paying a lower rate, and is now breaking the deal.
And, after all, what does bankruptcy mean for a city? For a private firm it means they sell their assets and the investors lose their money? But, would a city have to sell assets in bankruptcy; would citizens lose their investment in the city?
The long term effect of this is that states, counties, and cities across the country will have a harder time selling bonds, and will have to pay higher interest rates.
CalPERS says its much more complex than bankruptcy ~ that the retirement funding situation has to be dealt with. I suppose CalPERS could simply refund the deposits and drop the obligations to retirees, but that’ll take action by a court.
lol.
I object to your being broke! You aren’t allowed to be broke!
Say what you will about how unrealistic and bad ATLAS SHRUGGED was in some ways, she still squarely pegged the bad guys.
If the victim (loosely speaking) decides it doesn’t want to participate in being looting (’victim’ in this case being a lesser looter) any more, why the whole thing could crumble.