This is a tough one. As much as I hate unions, I have a hard time sympathizing with someone buying San Bernardino bonds in 2005. It has been obvious for a LONG time that California & its cities are in a race to hell...
I am not in disagreement that muncipal bond buyers are responsible for doing their own due diligence, and as more see that “municpal bond” does not guarantee safety more will do better due diligence and cities that make unreasonable pension promises will get the lack of financial respect they deserve in the bond markets.
However, Calpers as a government near monopoly is a different story and I have no sympathy for it.