If this discussion is happening in Newport Beach, CA, one of the richest cities in the US, how can any US city survive the pension crisis?
ANSWER: Nobody can. This system of unfunded pensions just assuming they will always be able to just raise taxes is collapsing. The morons didn’t do the math. If you retire 100 government workers, you have to replace them. Now you are paying for the retired folks and their replacements. The cost of government rises exponentially. This is why cities will move into bankruptcy to escape pension liabilities and then you have workers who will not work seeing they too will get screwed. That is the vortex that took down Rome. So get your hip-boots ready. A lot of shit is going to fill the streets and airwaves. Watch what happens after 2015.75. We are headed into a muni-implosion. Get rid of muni-bonds. It will become a contagion whereas they will all be painted with the same brush.