Stockton, California Bankrupt

[errolanderson]

Apparently, Stockton is broke primarily
due to insane promises to public service
unions. But one by one, a number of U.S.
cities may file for bankruptcy possibly
this year . . .

As for California, the mess has likely
just begun. Oakland & LA may be next on
the road to bankruptcy as well.

This has to be tough news for ETF Muni
bond funds to swallow.

[cottonpicken]

Errol have you ever studied the pension fund
nightmare?

These funds hold tonnes of bonds,if their is a default
or write down they are screwed without a cds being
paid out.

They are screwed anyway with no growth for the past
10 years when they where banking on 6-10%.

[errolanderson]

cottonpicken . . . the U.S. economy is
far from out-of-the-woods despite all
the positive growth data flowing from
their government into markets these
days. This is still the 'calm before the
storm' in my opinion. As Bernie Madoff
stated from his jail cell . . ."The U.S.
government is just a giant ponzi scheme"

I'm am in no way any expert in the bond
market, but from my limited knowledge,
pension funds may be in the crosshairs
of a massive hit with this unfolding
muni fund debacle.

Errol

[Hopperbin]

Stockton only has 291,707 people, hardly one of the most populous cities in the usa so wonder about the rest of the article. Anyways if there is accounting errors should not someone be charged? Could they not raise taxes to pay for their shit? Too many questions here.