[sickoflibs]

RE :Nearly a year after it halted contributions to America's biggest pension fund, San Bernardino will resume payments to Calpers at the start of the new fiscal year - but continue to not pay other creditors, according to the budget.
San Bernardino will not make interest and principal payments on $50 million in pension bonds issued in 2005, according to the new budget. The city council on Monday will review the budget, a blueprint for how the city proposes to manage its finances since declaring bankruptcy last August. “

Holy crap, imagine investing in City bonds for a City that screwed its LAST bondholders to payoff $$$ city union retirees?

'Sorry we cant pay the (home) mortgage again this month because Christmas is coming and we promised the kids some really good presents this year'

[Longbow1969]

Holy crap, imagine investing in City bonds for a City that screwed its LAST bondholders to payoff $$$ city union retirees?

It's amazing but creditor's almost always find a way back. The logic is they see this big taxpayer funded entity that suddenly has no debt and figure it'll be at least another generation before it could mismanage itself into default again. It really is why we can't bail out these bondholders/creditors. Let them eat the losses until they finally learn to avoid these leftist, irresponsibly run cities.

'Sorry we cant pay the (home) mortgage again this month because Christmas is coming and we promised the kids some really good presents this year'

To a liberal, this is reasonable. You know, it's for the kids afterall...

[SeekAndFind]

MORAL OF THE STORY: If you’re into muni’s for income stream — AVOID CALIFORNIA altogether.

With the tax and spend, anti-energy, pro-illegal policies of the state, and 1/3 of all welfare recipients to boot, bankruptcy is just a matter of time.

And notice how bond holders are the first to be screwed.