Stockton Becomes Biggest US City To Declare Bankruptcy (It’s Official)
by Tyler Durden
A mere nine months after we first discussed the inevitability of Stockton, CA.’s bankruptcy, a judge has ordered today that the city will now become the most populous in the US to be declared bankrupt.
*STOCKTON CREDITORS DIDN’T NEGOTIATE IN GOOD FAITH, JUDGE SAYS
Creditors are pushing to get the city out of bankruptcy but the judge states that “by any measure” the city was insolvent. So, in summary, yeah, it was broke years ago, it still is broke – despite the best efforts by the Central Planning Reserve to reflate the same housing bubble that was the primary reason for the city’s insolvency in the first place. Only this time, it’s official!