San Bernardino Exits Bankruptcy, But More Distress Is Ahead

Sacramento Officials for the decrepit city of San Bernardino are touting the great news that, after five long and tumultuous years, the city this week officially exited bankruptcy. Starting next month, it will begin paying its debts again. Of course, it pulled off this miracle by stiffing creditors — many of whom will receive only one cent on the dollar. I suppose that's the expected risk for anyone who invests in a California municipality these days. But keep in mind the one group that didn't take a haircut: the city's highly paid public employees and those who already have retired