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Subject:  Re: Suddenly, Retiree Nest Eggs Look More Fragil Date:  6/20/2013  3:08 PM
Author:  mendomann Number:  18443 of 20791

but I think the poster might have been raising the issue of whether the US Government will bail out the pension and health liabilities of cities, counties, and states.

That will never happen. The only solution for cities and counties is bankruptcy. It's already happened in places like Stockton, CA. States can't go bankrupt.

Bankruptcy is a formal process with a clear legal outcome that leads to a partial or total discharge of debts. It’s available only to individuals and certain classes of organizations. Individuals, most private companies, and local governments can go bankrupt but state governments, banks, and insurers can’t. (Banks and insurers “become insolvent” and have government-run or mandated insurers pay some or all what they owe.)
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