Forum Post: Stockton, CA Next Muni Default Domino To File

Stockton, CA Next Muni Default Domino To File

http://www.zerohedge.com/news/stockton-ca-next-muni-default-domino-file

(ZeroHedge) "Stockton, California, which declared a fiscal emergency in May, warned it may default on redevelopment agency debt issued in 2006, citing a shortfall in tax-increment revenue. Debt service will exceed available revenue by about $858,000 in the North Stockton project area, according to an Oct. 12 filing with the SEC." As expected, just like in any other house of cards, once the first one goes, the next ones down realize that those who default first (or among the first) default best, as there will be no money left for the stragglers. Expect to see many more cities biting the bullet and making a mockery of all those who in turn mocked the bearish muni thesis."