Bloomberg reporter David Evans won the London-based Foreign Press Association’s 2009 Media Award for best financial story this week, for “The Hidden Pension Fiasco.”
An interesting story about how public pension fund managers have been making up current funding shortfalls with bond issuance. They cover the shortfall, but very quickly rack up continuing debt service for the taxpayer. This policy creates cliff diving phenomena. When future growth is overestimated, the realization comes suddenly and the deflation of government operations swift. California is in this process with debt service rising, consideration of a two tier employment structure, and each budget failing to balance after a few months.
Congratulation Dave Evans
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