On the subject of Stockton's bankruptcy, I wish you would call the city's bond insurers on the carpet for wanting to shift their insurance business losses to city pensioners.
The city's pension system, including its unfunded liability, was already in place when the bond insurers evaluated the city's financial condition and made their decisions to insure the city's bonds.
The city paid these bond insurers a substantial fee, or premium, for insuring the bonds. The bond insurers made a bad business decision when, despite the city's existing pension system, they decided to insure the city's bonds.
They took the city's fee and the risk ... and lost. To try now to shift their insurance business loss to city pensioners is a violation of the most basic insurance concepts. It's corporate arrogance in its extreme.
As an analogy, imagine if you were careless and crashed your car. You would expect your auto insurance company, to whom you've paid premiums, to cover your loss beyond your deductible.
But imagine that your auto insurance company takes you to court to require that you pay a portion of your loss by reducing your contributions to your savings account. That would be nonsense. That would be a total abandonment of the responsibilities of an insurance carrier.
Please share this view, this perspective, with your readers. Bond insurance and all other kinds of insurance become meaningless if the city's bond insurers are allowed to shift their business losses to others.