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Finally the bond firms get it. They understand that communities are trying to transfer the unfunded liabilities onto general funds.
"A leading credit-rating agency, Moody’s, has begun treating unfunded pensions like bond debt, giving California a combined tax-supported debt of $136.9 billion that is well beyond other states but also may be understated.
The decision to add pensions to bond debt announced by Moody’s Investors Services last week reflects concern about public employee pension costs, which are growing as state budgets plunge deep into the red during a lengthy economic downturn."
In two years Los Angeles and San Fran will be spending upwards of 25% of revenues on pension costs. How do they pay for cops, roads and other services? They can't without massive tax increases. In a State with 12.5% official unemployment, over half a million foreclosures, AB 32, illegal aliens and union monopolies, we have reached the tipping point--and the rating services know it.
When will the California government collapse? Sooner than later.
More...
"A leading credit-rating agency, Moody’s, has begun treating unfunded pensions like bond debt, giving California a combined tax-supported debt of $136.9 billion that is well beyond other states but also may be understated.
The decision to add pensions to bond debt announced by Moody’s Investors Services last week reflects concern about public employee pension costs, which are growing as state budgets plunge deep into the red during a lengthy economic downturn."
In two years Los Angeles and San Fran will be spending upwards of 25% of revenues on pension costs. How do they pay for cops, roads and other services? They can't without massive tax increases. In a State with 12.5% official unemployment, over half a million foreclosures, AB 32, illegal aliens and union monopolies, we have reached the tipping point--and the rating services know it.
When will the California government collapse? Sooner than later.
More...