AOL.com Video - Stockton California Went Bankrupt

VIDEO:People

Stockton California Went Bankrupt

Description:Stockton, California made history in June 2012 when it became the largest U.S. municipality in history to file Chapter 9 bankruptcy. It wasn't the first Golden State city to do so, and what's happening in out west is spreading to the rest of the country. Stockton, like many U.S. city governments, spent lavishly throughout the 1990s when the real estate bubble filled public coffers with property tax revenue. (8:44)

Source: ReasonTV

Tags: Stockton California Went Bankrupt , avoid repaying all of the bondholders , big public works projects , crippling public employee contracts