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High Yield... High Risk.
If it was a sure thing, it wouldn't be issuing high interest financial products.
I guess Stockton is following Vallejo's move by shafting creditors, raising taxes, reducing services and keeping their union pensions largely untouched. Seems pretty "high risk" to be a resident of these cities who are witnessing their cities burn down while government workers keep their bennies.
Good enough to kick the can down the road I suppose.
Meanwhile, Vallejo is still looking at bankruptcy since they have no prayer of digging out of their pension liability.
http://money.cnn.com/2014/03/10/pf/vallejo-pensions/
Hopefully investors will learn not to be stupid enough to loan government entities money.
It's the ole two stroke bankruptcy. They emerge, but they are still essentially bankrupted in fact by the self served pension feasts of the civil servants. The first emergence from bankruptcy is for show.
The first stroke is to shaft the creditors while maintaining the illusion that the city will go on working, the second bankruptcy will be to reign in the pensions.
http://www.centralvalleybusinesstimes.com/stories/001/?ID=29774