The imminent threat to the muni market may be overstated, but there is a compelling argument that the long-term challenges are very real, particularly as the revolve around pensions funds, and generous accounting, and the possibility that money can just run out.NYT profiles the town of Prichard, Alabama which just stopped sending checks — in contravention of state law — to about 150 pensioners.
As you can imagine, the ramifications for the pensioners have been about as bad as you would expect. Several have gone bankrupt or have had to unexpectedly go back to work at an old age.
Then there’s this:
Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief. “He was a proud enough man that he wouldn’t accept help.”
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