STOCKTON, California -- Hoping to stave off the ignominy of becoming America's largest city to declare bankruptcy, Stockton officials are planning on suspending $2 million in bond payments and are seeking mediation with the city's creditors.

http://www.sacbee.com/2012/02/24/4288696/city-of-stockton-will-suspend.html

If given a choice between bonds and 2-ply toilet paper, take the toilet paper.
Their value and usefulness will eventually converge, and the 2-ply is much more comfortable.