California heading toward surprise defaults

Local governments spent $1.34 billion picking up their employees' required contributions to retirement accounts in 2009 -- and $1.96 billion doing the same in 2010, according to data collected by State Controller John Chiang.
That's nearly a 50 percent increase in a single year. We've asked officials to help explain what's going on , and will let you know what we learn. Public Sector

Bond holders should beware that local government will cheat on this issue right up to the default. The best path for Californians is a tax revolt, nothing shakes up the corruption more than a public tax revolt. Public Sector Unions? Fundamentally undemocratic and corrupt, have been corrupt since Brown passed the Dills Act.