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REPORT ABUSIVE REPLY
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Message Subject
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MOODY’S WARNS OF MASS CALIFORNIA MUNICIPAL BANKRUPTCIES....
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Poster Handle
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Anonymous Coward |
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Post Content
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Some cities going bankrupt now is actually a good thing. Next year they are back and then can take on new debt.
Quoting: Anonymous Coward 22223638 It's not that easy. In such an environment it would be very difficult to borrow money. Also, the bondholders will lose an incredible amount of wealth, most of the money raised for gov. debt actually comes from individuals, retirement funds and investment funds, and if they lose big they will not have money to invest in future debt..... So true. So what happens when retirement funds are invested in these bonds that are not repaid? Taxpayers are on the hook for the state retirement benefits. No future debt, but taxes go up! Big time. And when majority have not the money to pay their taxes? What then? Taxpayers are only on the hook to pay the retirement benefits if the city does NOT go into bankruptcy. If the city goes into bankruptcy the city has to go through a structured settlement. That is what's going on right now with the cities that have bankrupted. The union lawyers are scrambling like roaches crawling out of a freshly opened crawlspace for 1st dibbs of the structured settlements.
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