Stockton plan cuts bond payment and stiff bondholders of $197.5 million

The City of Stockton is acting like Barack Obama. If you remember, the President stole the bond and stocks of General Motors investors and gave them to the unions.




Stockton wants to steal the bonds bought by investors for pension plans and totally stiff them.



“A Stockton bankruptcy proposal does not cut pensions, but the city wants to eliminate $197.5 million in pension bond payments over the next 25 years, a plan opposed by the bond insurer that would be stuck with the tab.



The bankruptcy proposal would end pension bond payments from the troubled city general fund, which pays for most programs and is deep in the red with a $26 million deficit that could balloon if employee lawsuits overturn emergency pay cuts.”



Actually, this might be a good idea. It will teach those who buy government backed bonds that they are suckers and are the cause of the bankruptcies by funding the excessive spending. After this, who is stupid enough to buy a government bond? Just talking about it should send up a red flag. What do you think?

http://capoliticalnews.com/2012/07/23/stockton-plan-cuts-bond-payment-and-stiff-bondholders-of-197-5-million/