What It’s Like Living in a Bankrupt CitySeptember 6, 2013 – In The News
Michael Sweet was quoted in the NPR article "What It’s Like Living in a Bankrupt City." While the full text can be found in the September 6, 2013, issue of NPR, a synopsis is noted below.
Stockton has long had a problem with crime, but the problem has escalated because the California city is broke. Until the Detroit filing, Stockton’s bankruptcy was the largest in U.S. history.
The city intends to present its plan to exit bankruptcy to a judge as early as this month. But asking bondholders and other creditors to take big losses while refusing to trim pensions won’t fly, predicts Michael Sweet.
“The city has indicated they will not impair the pensions, although the judge has told them he might not be able to approve a plan that doesn’t do that,” Sweet says. “He said the day of reckoning will come on these issues.”