California Public Penson Bomb

Barron's reported on this years ago.

Years before that they reported on the S&L scandal long before it blew up and predicted that it would be the US taxpayers holding the bag. It was.



"The nation's two biggest public pension funds reported meager returns for the last fiscal year, raising the prospects that state and local governments and school districts may have to contribute more toward their workers' retirements.

The California Public Employees' Retirement System [CalPERS] posted a 1% return on its investments for the fiscal year that ended June 30. The smaller California State Teachers' Retirement System reported a 1.8% annual return.

CalPERS needs a 7.5 percent average return in order cover its pension commitments for its members. State and local governments must make up any difference, so devastated budgets will be devastated further. "

http://reason.com/blog/2012/07/17/calif ... s-grow-eve

School districts declaring bankruptcy so they can re-negotiate these deals?

Pretty soon the only people living in Cali will be Illegals and retired gov't workers trying to collect pensions. Even the Hollywood limousine liberals will probably defect to their vacation homes in Aspen or Vail.

Actually a lot of the retired Cali pension people are moving to other states with lower taxes and costs of living. So they are taking cash out of the economy.

Good point, you can move and still collect your pension. But you lose your vote. Those who remain may vote against bailing out your broken pension system.