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In reply to the discussion: A Very Bad Idea Coming Soon to a City Near You [View all]Nuclear Unicorn
(19,497 posts)27. Good questions.
I thought bonds were supposed to carry the risk of default.
Isn't the interest rate, on the bonds, related to this risk of default?
I thought creditors were paid before bond holders.
I thought pension obligations would be considered creditor obligations.
Isn't the interest rate, on the bonds, related to this risk of default?
I thought creditors were paid before bond holders.
I thought pension obligations would be considered creditor obligations.
Chapter 9 Municipal Bankruptcy pays-out bond-holders first but bonds are the instruments through which creditors lend money to the municipality. Generally, the point of CH9 is to allow the municipality to modify the repayment schedule of its bonds.
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Wtf would a bondholder care about retirees? You don't want to pay you don't get debt to
jtuck004
Dec 2011
#29
So the rest of us have to stick it to the bond holders to the degree where they no longer can profit
saras
Dec 2011
#6
I would think bondholders are pushing ahead of others in line in the bankruptcy,
RickFromMN
Dec 2011
#16
I was under the impression that bondholders are first in line in a bankruptcy proceeding
badtoworse
Dec 2011
#20
Pensions are deferred pay. The RWrs have messaged pensions to mean some sort of golden parachute
wiggs
Dec 2011
#11
How will the Plutocracy protect itself if it keeps doing this to its police gangs? n/t
Zalatix
Dec 2011
#14
Let's hope the officers who have harassed & abused OWS read this or hear about it.
pacalo
Dec 2011
#18
Another instance of "class warfare" from the top down. Disgusting in the extreme. n/t
whathehell
Dec 2011
#19
When my father was alive, he worked for a corporation that promised him and my mom medical care
fasttense
Dec 2011
#24
Us UAW retirees did just that when the retirees were not allowed a vote in the cuts
NNN0LHI
Dec 2011
#30
Seriously? The court ruled that retirees will just take whatever the current managers want to pay?
lumberjack_jeff
Dec 2011
#34