Tweet
In 2012, will California be able to pay CalPERS and CalSTRS pensions?
"The nations two biggest public pension funds, CalPERS and CalSTRS, were big investors in debt-laden private equity during the boom years. Now some worry that a wave of debt coming due in two years could limit borrowing needed for refinancing.
A page-one New York Times story this month said massive corporate and federal government debts are coming due at the same time, causing worry that some companies will have trouble getting new loans, spurring defaults and a wave of bankruptcies.
Actually CalSTRS will be paid--per the Constitution it gets first dollars into the General Fund.
Why is California staying in a Depression--because of high interest rates for its bonds. Glad to see the discussion of this starting.
More...
"The nations two biggest public pension funds, CalPERS and CalSTRS, were big investors in debt-laden private equity during the boom years. Now some worry that a wave of debt coming due in two years could limit borrowing needed for refinancing.
A page-one New York Times story this month said massive corporate and federal government debts are coming due at the same time, causing worry that some companies will have trouble getting new loans, spurring defaults and a wave of bankruptcies.
Actually CalSTRS will be paid--per the Constitution it gets first dollars into the General Fund.
Why is California staying in a Depression--because of high interest rates for its bonds. Glad to see the discussion of this starting.
More...