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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (65747)	8/25/2010 4:47:54 PM
From: rich evans	Respond to of 218016

Under accounting rules, California does not have to account for its pension/healthcare and other post retirement benefits so it debt is only its extrinsic debt not the present value of all these obligations. Corporations must account for these obigations on their balance sheet. States and municpalities do not. I bet under Canadian law , Ontario must account for these future obligations, hence they have much more debt shown. If California had to show these obligatons, it would look like Ontario. The risk of California debt is not that you won't get your interest. You will. But you may not get your principal back when due as California can't pay and must issue new debt to repay or default. rich