[Buckeye McFrog]

The undervalued piece of the story...

The city has stopped making bond payments

This is going to have broad ramifications. The municipal bond market is going to dry-up because no one is going to take the risk of buying them anymore. This will have major repercussions for how local governments operate. It is also going to zap a lot of "the 1%" who were buying them to avoid taxes.

[Uncle Chip]

The city has stopped making bond payments

But I'm sure the city is still making those outrageous payments to CALPERS so that its retired firemen, policemen, and other retirees can continue to live high off the hog in the meantime.

[Carry_Okie]

The city has stopped making bond payments

Which is not to say that the city has stopped paying outrageous pension benefits.

These people won't get it.

[Oldeconomybuyer]

...The city has stopped making bond payments...

All 0bama's "stimulus" did was delay the pain. Cities and States took his bribe money, continued their reckless spending, and are now paying the price. Unfortunately, Stockton is the tip of the iceburg.