Surely they won't be that dumb and will just default via Chapter 9 city bankrupt... | Hacker News

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bcoates on Dec 10, 2012 | parent | context | favorite | on: California School District Owes $1 Billion On $100...

Surely they won't be that dumb and will just default via Chapter 9 city bankruptcy? I'm mostly wondering who's dumb enough to trade good cash for bad debt on those terms.

lxm on Dec 10, 2012 [–]

The interest rate charged compensates for the Chapter 9 risk.

justincormack on Dec 10, 2012 | [–]

Not if there is no chance of payback and I think no interest up front.

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