Tuesday, July 19, 2011

Who invests in Virginia

State will dip into pension fund, repay with 7.5% interest

The Virginia state legislature claims that they can get a 8% return on cash flow? What is the main business in Virginia? Working for the Federal government. They have an implicit assumption, the Congressional demand for Virginia workers will grow greater than 8%.

This deal has default spelled all over it.

HT Yglesias

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