Today, let’s talk about what I have decided to call time-bomb bonds: securities that blow up in the issuer’s face years or decades after being sold to investors.
The case in point: $1.14 billion of pension bonds that my home state of New Jersey sold in 1997, securities that I came across while working with Cezary Podkul of ProPublica for anarticle about New Jersey’s finances that was published Saturday by The Washington Post. (Sloan/Washington Post)
well then tell the police and fire no more pension. see what they do. do we need a paid fire dept. no we don’t. how do other big towns do it, like paramus , and don’t tell me that we can not get any one because thats b s.
Even if a magic wand was waved and we went all volunteer tomorrow, the issue of these unfunded pensions would not change. It’s a real mess. On one side, there’s the argument that a deal is a deal, and legally, it must be paid. On the other side, there are the bean counters who say it’s mathematically impossible to uphold. If you somehow add money to it, then the issue then becomes where do you get that extra money from? The State as a fiscal entity is all but insolvent. If you make NJ taxpayers pay more, all this does is make individuals and businesses leave at a faster rate than they already are.
What we have is a complete stalemate. Eventually, it will reach the point where something has to give and the can cannot be kicked any further down the road. It won’t be attractive.
Delcan is correct there is no easy way out of the mess we are in, either cut state workers and programs or raise taxes.
they must pay up.
Pay up my ass…i’m sick and tired of carrying these union slobs.
IT’S MATHMATICALLY IMPOSSIBLE….Done.
Looks like the NJEA just completely backtracked on their discussions with the Pension Study Commission… must be some serious internal conflict about how best to proceed in reducing pension and healthcare benefit costs… https://www.state.nj.us/treasury/pdf/NJEA-CommissionRoadmap-Final_February2015.pdf I’m sure they got blow back from the police & fire unions, too
If I were Florida’s governor, I’d host a “Relocation Fair” at the Prudential Center in Newark. Wait – that can only seat about 18,000 people; they’d need to find a bigger venue…. MetLife Stadium perhaps ? Also, this is happening during an economic “recovery”. The next recession will C R U S H New Jersey.
to 10;17 you calling the fire and police slobs. o , o k.
https://twitter.com/govchristie/status/590938664705863680
boy this is getting good.