Harrisburg, Pa going bankrupt

[obgyn65]

It is going to be interesting to follow what happens to the muni bond holders.
http://www.nytimes.com/2011/10/13/us/harrisburg-pennsylvania-files-for-bankruptcy.html

 

[MichaelB]

This will be very interesting to follow for many reasons. Bankruptcy is not the only option, the bonds are insured, and there are disagreements between officials. This looks less like an insolvent municipality and more like a homeowner that bought a house that was too big at the top of the market and has a mortgage they don't want to pay so they are just walking away.

 

[Gumby]

Based on my experience, the one thing I can say is that it will not be as easy as they thought it would be when they decided to file.

 

[obgyn65]

Interestingly, it seems that the muni bond maket is doing much better now, after the Jefferson County and Harrisburg bankrupcy alerts:

Bankruptcy doesn't deter other municipal bond sales - Chicago Tribune

This will be very interesting to follow for many reasons.

 

[Midpack]

May provide some insights Vallejo, Calif., Cleared to Emerge From Bankruptcy - WSJ.com after 3 years.