Detroit Takes Lipstick Off Pension Pig
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  • rheddles

    “Needless to say, no one is particularly thrilled by this news.”

    No one except the residents of Realville.

  • three_chord_sloth

    The Burypensions blog always does a good job running these numbers in search of the Big Picture, but even it sometimes underestimates the problems.

    For instance: When a city such as Detroit ends up defaulting on bond payments, what kind of hole does that blow in OTHER city/state pension funds?

    All of these city/state pension funds hold bonds… bonds in their own city/state or others. When the first of the inevitable big defaults happen will that trigger a cascade? How much of these pension “assets” are just a daisy chain of phantom promises from one wheezing government entity to another?

    Nobody really know yet…

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