Hotel California

The pension/healthcare fiasco is really starting to bite now, as cities flirt with bankruptcy or start speculating with pension money in the hope of outsized returns to bail them out.  At the state level, tax increases promoted as benefiting students are in fact going 100% to pay for teacher pensions. The stage is set for the war between the unions and the taxpayers. Ultimately, the unions will lose because the money is not there to pay for their current benefits. Some will get away with it because they retired at the right time. But now is probably too late. Better have some savings.