Stockton, Mammoth Lakes and now San Bernardino; California cities that have all filed for bankruptcy.
Reason.com Managing Editor Tim Cavanaugh on Fox Business to discuss California's municipal debt crisis.
(appox. 5 minutes)
CALPERS (California Public Employees Retirement System) is heavily vested in the municipal bond market of which there is $167 billiion in obligations. If the CALPERS pension obligations, which are a source of state budgetary woe, are dependent upon municipal bond obligations, you can see where this goes death spiral pretty quickly.
As Cavanaugh says, Governor Jerry Brown has a plan but with all things in this state, seemingly, it lacks any sort of seriousness to attack the root cause of the problem which is completely unsustainable public employee pension obligations.
Goody that we here in San Diego have a front row seat for all of this.