The formula designed by the bond rating thieves combines with the power of local politics merge to make the future generation subsidize the stock market on the belief that it is in the best interest of the old folks. What a crock!

Pension crisis over, Mayor White says

The crisis only got worse. Idiots!

Under the proposed agreement, which will be voted on Wednesday by City Council, current Houston Police Department officers would retain most of their benefits while new officers would be offered significantly decreased benefits. White estimated that the city would issue about $100 million in pension obligation bonds to help it make some of the payments specified in the agreement, which would last until 2017.

. . . and then more . . .

The pension crisis was brought on by a slumping stock market, lucrative changes that Brown agreed to and the city's former reliance on misleading actuarial reports prepared by the pension systems.

These folks need to look at the SEC’s own rules regarding the ability of its members to offer loans to their clients. The value of stocks held as collateral on margin accounts is about 50 per cent. The fair market value of the stocks that will be purchased from the pension obligation bonds is about half what the actuaries will tell you they are worth. A stock does not simply double in value as collateral just because it is held by a pension trust rather than a member of a stock exchange.