Regardless of where the courts come down..... if the money ain’t there, the money ain’t there.
The only questions is what goes in the crapper first, if the pensions are inviolate.
He who knows he has enough is rich.
Greedy union bastards.
This should be interesting. In corporation law - Delaware is the place of choice. They have encouraged formation of corporations there and the law has been so intensively litigated and clearly defined that businesses from all over incorporate there to take advantage of the certainty as to the meaning of its corporate law. Likewise, I think CA is going to be where all the new law regarding Chapter 9 is coming from. There have been few Chapter 9âs in history, so there is not that much precedent developed. But CA will change that, with a number of municipalities in, or on their way to Chapter 9. Good job CA!
It would seem that the people of California forgot the lessons of history: when Lenin made promises to the proletariat, he invariably revoked them on his own whim.
Stalin was even worse.
Leftists make bad bedfellows.
A lot of cities are in deep trouble over pension costs. They need to reform pensions for current and future employees, but their pension obligation to current retirees is ironclad.
Add that to the federal debt and unfunded liabilities ($4.2+ trillion in state and $16 trillion fed debt plus $110+ trillion liabilities), it puts the US government debt at 870% of GDP! That doesn't include consumer debt.
"Market-valued unfunded public pension liabilities made up 67% of all state debt, according to a report Tuesday by State Budget Solutions, a non-profit organization advocating state budget reform. The group's third annual state debt report, which looked at combined debt and future spending obligations in all 50 states as of Dec. 31, found that $2.8 trillion of the $4.19 trillion total debt total goes toward pension liabilities.
It's about time. It would be really funny to learn that CalPERS has retirement funds invested in these two bond insurance companies.