[Steely Tom]

In substance this bond deal would be nothing more than shifting the increasing risk of insolvency from public employees to bond holders.

As long as there's an endless supply of suckers to buy the bonds, everything is hunky-dory. I don't see any changes in that dynamic.

[p. henry]

They truly would be suckers. In the municipal bankruptcies that have occurred here in California, the pensioners have done just fine and the bondholders have taken significant haircuts. No part of my portfolio is invested in municipal bonds.