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The destruction of the greatest economy in the history of the world continues. Why anyone in their right mind would lend money to a city or state controlled by irresponsible lying politicians is beyond me. The bondholders will face huge losses. It will be interesting to see how much their bonds end up being worth. The cost of borrowing for all municipalities will increase.

Municipal workers may or may not show up for work. Homeowners and honest working citizens will be sitting ducks for criminals. I would fire any worker who didn't show up but I don't know what the legal restrictions are.

Businesses that supply the City will by denied payment. Some will probably lay off workers or close down. Home values will decline. Revenues will decline.

There are several other cities in California and other states in the same situation.

The State of California is effectively bankrupt.

The house of cards is falling apart. Once people realize how bad the situation is and stop lending to cities it will get much worse.