It was exciting for a moment, even for a whole Easter weekend because the judge created suspense beyond the well-known events – Crucifixion, Sepulcher, Ascension. Stockton could go bankrupt! We would know on Monday.
Sure enough, by mid-Monday morning we knew that the judge had ruled that the municipal government of Stockton could do what it had desired to do and been obstructed from doing by its creditors and their insurers: declare bankruptcy and weasel out of paying whatever debts it could.
This was News, we thought. We opined at the end of last week that if Stockton were allowed to Do This, other cities would soon follow in its footsteps. We shivered slightly at the chilling notion that Stockton should lead anyone anywhere, but at least it was clear, straightforward governmental action against Wall Street. The other cities mentioned included San Bernardino, Bakersfield, Fresno, Modesto and Merced. These are seats of the California counties worst affected by the Great Pop of the housing bubble.Read More »