De-fault is in our stars, Brutus (with apologies to Shakespeare.)
Can’t wait to relocate to San Bernardino..it must be great to live there...
I’ve heard that these pension defaults are on the horizon all over the country. I’ve heard that unfunded liabilities total into the hundreds of billions of dollars.
We’ve heard about real estate bubbles and stock market bubbles and such, but haven’t heard too many talk about the pension bubble which will burst. And it will burst, as so many baby boomer employees of these governments are retired and collecting benefits. Or will retire in the next 5 to 10 years.
Pensions are paid to people who worked for them
Bond holders know they are at risk when investing and seek out returns commensurate with that risk.
I wouldn’t lend them one dime on an unsecured bond. They would have to put up a first deed of trust on a piece of property that I wanted or they could go pound sand. I don’t understand how the courts can put CALPERS ahead of everyone else. Any one who lends to a municipality is taking a horrible risk.
Ill go with Illinois to be first, with NJ 6-8 months later