frans2 Wrote:
Jun 28, 2012 3:41 PM
Municipalities aren't going broke because the unions negotiated good retirement deals, they are going broke because of poor financial and fiscal management. Had they realistically valued the returns on retirement fund investments they would have made adequate provision for it and, most probably, would have resisted generous benefits. Instead they pretended they would get returns of ten or twelve or fifteen percent per annum on their investments which was a fantasy. Now both the municipal employees and the municipalities are paying the penalty for spending too much time in financial fantasyland.