Stockton Leaders Cleared to Negotiate Cuts with BondholdersApril 2, 2013 – In The News
Michael Sweet joined "The Kudlow Report" to discuss the recent bankruptcy ruling in Stockton, California.
Ultimately, the issue as to whether CalPERS will need to take a haircut the way that other creditors in this case may have to, is yet to be resolved. This detail is something that will need to be addressed before full bankruptcy plans can be discussed.
Michael believes that Stockton is facing similar issues to what Detroit and San Bernardino are facing – paying the rising costs of pension plans which they agreed to when the money was available in the city.
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