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U.S. Bankruptcy Judge Christopher Klein ruled Monday on the most important question facing Stockton, Calif. — whether it could enter into federal bankruptcy protection.

Klein agreed that the city is, in fact, broke.

But he didn't decide the question of whether the city must renegotiate its pension obligations, as some of its creditors had hoped.

"He did put off for another day the question of whether the pension holders would have to be part of any debt reduction solution," says Robert G. Flanders Jr., who was the state receiver appointed to oversee the troubled finances of Central Falls, R.I.

It's possible that, as Stockton draws up its plans for getting its financial house back in order, it will revisit its pension obligations, though the city has been reluctant to do so.

Klein did not force the city's hand in this regard, though he made it clear this could remain an issue going forward.

"The pension question may be presented in a number of different ways," says James Spiotto, a municipal bankruptcy attorney in Chicago. "Why rule on something you don't absolutely have to rule on?"

Millions At Stake

Like many other cities, counties and states, Stockton's pension fund is millions of dollars in the hole. Typically, pension obligations have been held sacrosanct, even as bondholders and other creditors lose money in bankruptcy proceedings.

As is the case with most other California localities, Stockton's pensions are managed by the California Public Employees' Retirement System, or CalPERS, the largest pension fund in the country.

Gone Bust

The biggest municipal Chapter 9 bankruptcies in the U.S., and the approximate debt.

Jefferson County, Ala. (filed 2011) — $4,200,000,000

Orange County, Calif. (filed 1994) — $1,974,000,000

Stockton, Calif. (filed 2012) — $1,032,000,000

San Bernardino, Calif. (filed 2012) — $492,000,000

Vallejo, Calif. (filed 2008) — $175,000,000

— James Spiotto of Chapman and Cutler LLC

The newly elected pope's focus on the poor and the marginalized has instilled great faith among many Catholic women. They hope the papacy of Pope Francis will promote a leading role for women in the church.

A group of American nuns and Catholic women recently made a pilgrimage to Rome to make their requests heard.

They visited ancient sites that provide evidence of the important leadership role women played in the early centuries of Christianity.

The Two-Way

In Ritual, Pope Francis Washes The Feet Of Young Inmates, Women

A decision by India's Supreme Court to reject Novartis AG's bid to patent a version of one cancer drug could lead to more exports of cheap medicine from that country to "poor people across the developing world," the BBC writes.

NPR's Julie McCarthy tells our Newscast Desk that the ruling, announced Monday, ends a six-year legal battle that has been closely watched by pharmaceutical firms, humanitarian aid organizations and generic drug manufacturers.

She adds that:

"The case highlights the cost difference between foreign pharmaceutical firms looking to protect their investments and local generic competitors copying and selling drugs for a fraction of their original cost. Novartis' drug, known as Glivec, was a breakthrough treatment in the 1990s for leukemia. It costs about $2,500 a month. The generic version: a couple hundred dollars. When the Swiss drug-maker sought a new patent, Indian officials said it was not changed enough to qualify as a new drug."

This week, optimists had no trouble finding fresh evidence to suggest that the housing market is recovering.

On Thursday, they learned from a Realtors' report that existing home sales hit the highest level in more than 3 years. And earlier this week, a Commerce Department report showed homebuilding permits have been rising at the quickest pace since June 2008.

But not everyone is convinced that the sector's momentum has staying power. Skeptics point to reasons why the housing sector might falter, just as it has several times over the past six years.

If the optimists and pessimists had to face off in front of a judge, these are the exhibits they might enter as evidence:

The Optimists' Case

Your honor, don't be blinded by years of bad news. Look at these recent statistics:

— Home prices rose by more than 7 percent last year, according to the widely respected S&P/Case-Shiller Index.

— Builders have been hiring again, adding workers at a pace of 30,000 a month over the past five months.

— The Federal Reserve plans to hold interest rates at historically low levels for a long time, making homes more affordable.

— The number of underwater borrowers, i.e., those whose mortgages exceed the value of their homes, fell by almost 4 million last year to 7 million, according to JPMorgan Securities.

Economy

For Some Ready To Buy, A Good Home Is Hard To Find