Free Republic

When Detroit filed for bankruptcy in 2013, the city’s emergency-financial team said that high levels of retirement debt could prevent them from rescuing the Motor City’s finances. Detroit had been in economic decline for decades, and the pension problem—including billions of dollars in bonuses handed out while the city was hurtling toward insolvency—was just one part of the depressing financial picture. Dallas, by contrast, has been one of the fastest-growing American cities in recent years. Becoming a magnet for investment and opportunity, however, hasn’t protected the Texas city from experiencing its own Detroit-style financial crisis. Dallas’s retirement system for cops...

A growing number of schools and community colleges in California are refinancing voter-approved bonds to raise extra cash, a practice many financial experts say puts an additional burden on taxpayers and may violate state law. The process, known as cash-out refunding, is similar to refinancing a home mortgage to lower monthly payments and take out equity in cash. It's popular because the school districts get extra money - frequently millions of dollars - without going back to the voters. Most use the money to cover construction cost overruns, but critics say California law limits the use of refunded bonds for...

THINKING OF REFINANCING your mortgage? Welcome to the club. With mortgage rates so low over the past few years, the question hasn't been "should you refinance?" but "when"? While conventional wisdom once said you had to shave at least 2% off your loan in order for refinancing to make sense, these days it could be worthwhile with an interest reduction of just 0.75%, says Doug Perry of Countrywide's consumer-markets division. That's because soaring home values, increased competition and automated underwriting (which can approve or reject your refi application in a matter of minutes) have made refinancing quicker, easier and potentially...