Reckless Kansas Considering Issuing High Risk Bonds

Toro

Diamond Member
Sep 29, 2005
106,232
41,052
2,250
Surfing the Oceans of Liquidity
Because of their discredited supply side theories.

Kansas is considering a corner of the municipal-bond market most states have come to avoid because of its risk—a $1.5 billion sale of so-called pension bonds to boost returns at the state retirement system.

The strategy, which Gov. Sam Brownback is proposing in the face of a growing state deficit, would help lower annual state contributions to the Kansas Public Employees Retirement System. Under the plan, the state would issue bonds and then invest the proceeds, making a decadeslong bet that pension-fund returns will exceed current interest rates for taxable municipal bonds. ...

Such debt offerings can be seen as a sign of distress since governments such as California, New Jersey and Illinois are among the largest issuers and hold the lowest credit ratings among states. ...

The bonds “can be used beneficially in some situations, but they are often inappropriately used by the desperate and irresponsible,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. Debt tied to pensions played a role in Detroit’s bankruptcy and that of Stockton, Calif. ...

Over the last year, Moody’s Investors Service and Standard & Poor’s Ratings Services have downgraded Kansas, as sharp tax cuts have dried up revenues. ...​

Risky Pension-Bond Strategy Considered in Kansas - WSJ
 
I am wondering what happened to the funds already paid to the retirement system....
Much like your SS money it was already spent. What part of this is how government treats your investments don't you get?
Too bad the GOP is just as bad as the dems at handling monies.....
One would think at some point even the dumbest of left wing idiots would stop giving the government that money and power. Yet you people keep hatching more plans to give them even more control. What makes you think your healthcare is actually going to do better than your retirement with government in charge?
 
What nsas needs to do is lower the taxes on the wealthy, raise taxes on the middle class, and give the increased revenue to corporate heads.... that will ensure prosperity.
 
Because of their discredited supply side theories.

Kansas is considering a corner of the municipal-bond market most states have come to avoid because of its risk—a $1.5 billion sale of so-called pension bonds to boost returns at the state retirement system.

The strategy, which Gov. Sam Brownback is proposing in the face of a growing state deficit, would help lower annual state contributions to the Kansas Public Employees Retirement System. Under the plan, the state would issue bonds and then invest the proceeds, making a decadeslong bet that pension-fund returns will exceed current interest rates for taxable municipal bonds. ...

Such debt offerings can be seen as a sign of distress since governments such as California, New Jersey and Illinois are among the largest issuers and hold the lowest credit ratings among states. ...

The bonds “can be used beneficially in some situations, but they are often inappropriately used by the desperate and irresponsible,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. Debt tied to pensions played a role in Detroit’s bankruptcy and that of Stockton, Calif. ...

Over the last year, Moody’s Investors Service and Standard & Poor’s Ratings Services have downgraded Kansas, as sharp tax cuts have dried up revenues. ...​

Risky Pension-Bond Strategy Considered in Kansas - WSJ
Ah the grand Kansas teaper experiment continues.
 
I am wondering what happened to the funds already paid to the retirement system....
Much like your SS money it was already spent. What part of this is how government treats your investments don't you get?
Too bad the GOP is just as bad as the dems at handling monies.....
One would think at some point even the dumbest of left wing idiots would stop giving the government that money and power. Yet you people keep hatching more plans to give them even more control. What makes you think your healthcare is actually going to do better than your retirement with government in charge?
I go to the socialist dream of healthcare, called the VA...
 
Because of their discredited supply side theories.

Kansas is considering a corner of the municipal-bond market most states have come to avoid because of its risk—a $1.5 billion sale of so-called pension bonds to boost returns at the state retirement system.

The strategy, which Gov. Sam Brownback is proposing in the face of a growing state deficit, would help lower annual state contributions to the Kansas Public Employees Retirement System. Under the plan, the state would issue bonds and then invest the proceeds, making a decadeslong bet that pension-fund returns will exceed current interest rates for taxable municipal bonds. ...

Such debt offerings can be seen as a sign of distress since governments such as California, New Jersey and Illinois are among the largest issuers and hold the lowest credit ratings among states. ...

The bonds “can be used beneficially in some situations, but they are often inappropriately used by the desperate and irresponsible,” said Alicia Munnell, director of the Center for Retirement Research at Boston College. Debt tied to pensions played a role in Detroit’s bankruptcy and that of Stockton, Calif. ...

Over the last year, Moody’s Investors Service and Standard & Poor’s Ratings Services have downgraded Kansas, as sharp tax cuts have dried up revenues. ...​

Risky Pension-Bond Strategy Considered in Kansas - WSJ
Ah the grand Kansas teaper experiment continues.
Well if democrats states do it, it must be in,,,very in, no matter the party affiliation....
 
Wow that sure is risky! What a risky thing to do! Good thing no other State does such a risky thing!

Except for Illinois, Oregon and California. All run by Reckless and Risk Taking Republicans no doubt.

Risky Risk! Riskers! Riskamabob! Reckless!


Oh those Reckless Riskers!
 

Forum List

Back
Top