Calpers seeks to sue bankrupt San Bernardino over pension payments. “The issue is, do Calpers obligations supersede unsecured bondholders? There’s an awful lot of unsecured bondholders in California. If you put pension obligations to Calpers as secured and senior to unsecured debt, in effect those bonds have been downgraded.” Downgrading drives bond prices down. A lot of those bonds are held by retirees and other savers, either directly or thru funds. You do the math.
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So what are they all going to do? Go on strike? Watch and marvel to what happens when a whole city defaults. It ain't gonna be pretty.
LIBERAL GREED!
It seems like the rats are beginning to fight among themselves over the last few scraps of food left on the sinking ship.
I heard on the news that Stockton is planning on sticking it to the bond holders so they can continue paying their pension obligations. This is going to get catching real quick. They keep it up no one's going do bonds in California.
Calpers doesn't give a shit about anything except getting the money they think they are owed. How else are they going to finance the next communist campaign for governor and president?