Bouncing the rubble of public sector pensions

NYT points to one bankrupt pension plan investing in another bankrupt pension plan:

The Texas teachers’ pension fund recently paid Chicago to receive a stream of payments from the money going into the city’s parking meters in the coming years. The deal gave Chicago an upfront payment that it could use to help balance its budget. Alas, Chicago did not have enough money to contribute to its own pension fund, which has been stung by real estate deals that fizzled when the city lost out in the bidding for the 2016 Olympics.

State Pension funds have only one hope, a massive federal bailout. This moral hazard is driving them to make riskier bets thus finding the shortest path to the expected Federal Bailout.