[Mariner]

The only way to fix this is to quit buying the friggin' bonds!

[Opinionated Blowhard]

In the bankruptcies of Detroit, Vallejo, Stockton and San Bernardino, bondholders have faced losses of up to 99% of their holdings, according to a Moody’s report dated May 18. Meanwhile all three California cities chose to preserve full pensions for their employees, while Detroit only cut pensions by approximately 18%.

Anyone who buys municipal bonds is stupid. Investors may think they are funding roads, but they are really funding $300,000 pensions for workers who retire at 50.

[MadMax, the Grinning Reaper]

Re The next Greece may be the US.

Why not? The people are Hungary for change but we are ruled by a Turkey whose wife buys Red China for the White House.

Also, most of Congress has the intelligence of a Brazil nut in Chile sauce.

I think I’ll skip eating for a while.

[pepsi_junkie]

Thanks, Liberals!

[Diana in Wisconsin]

The Chicago school district borrowed $400 Million MORE than it needed to make a one-time payment of $600 million?

I’m confused. I mean, I understand that we’re screwed, but I’m still confused...

[MUDDOG]

The difference is, Greece can’t print euros.

We can print dollars.

Our fate is hyperinflation rather than default.

[moovova]

“...it would borrow $1 billion to make a $600 million-plus pension payment due June 30 ...”

I don’t always borrow money, but when I do... I borrow $400 million more than I actually need.

[RayChuang88]

I do think that there may be a plan being worked on to reorganize the pension system in Chicago, the one that is causing problems in Illinois.

[blueunicorn6]

Well, somebody is buying these bonds.

That “somebody” made a commission buying those bonds.

Does that person pay up when the bond is no good?

I’m sorry, but we are going to have to start hanging thieves in this country. There are too many of them and they aren’t afraid of going to jail.

[yoe]

"...public pensions have recently turned into the biggest headache for taxpayers and municipal-bond investors..."

That would be all Union members from stage hands to teachers to federal employees....all on some pension plan. Firemen, military, police, to pilots also on a pension plan. Early retirement and government programs for those (8.7 million) not working and the government programs for illegals coming in daily to our nation. Look into a mirror Americans to see Greece.

In a nut shell, politicians wanting your vote and the government largess on the tax payer dime got us into this bind.

[ExSES]

Note the following link...:

The Illinois State Constitution needs to be amended to really address the pension problem in Illinois it seems?

http://will.illinois.edu/legalissuesinthenews/program/illinois-pension-system-and-changing-the-states-constitution

[SaveFerris]

[When Chicago Public Schools announced on June 24 that it would borrow $1 billion to make a $600 million-plus pension payment due June 30 an eerie feeling spread across bond investors and taxpayers alike]

It’s the Chicago way.

Yes, the USA will go the way Greece is going. The numbers tell the whole tale.

[cherry]

the only way to fix this is to stop funding lavish defined pensions from the get go...all govt employees should be simple 401k that they must contribute to....

govt is merely a tool to give to their favorites and take from the taxpayers left holding the bill.....

[Oatka]

The only way to fix this is to quit buying the friggin' bonds!

That's what I was wondering - how many times do those bond holders have to be hit with that 2x4? Or is it that there are so many sheep out there ready to be shorn that there is always a fresh supply?