The Millennial Moola Blog is written by an ex-bond trader who believes that the recent ratings downgrades of the State of New Jersey are far more perilous than the average municipal bond investor or broker realizes.
The significant, years in the making, under funding of the State’s pension plans has set these plans on the road to bankruptcy. The blog reminds the municipal market that for every $1 of true general obligation debt the State has, there is $7 of “appropriation debt” which is subject to annual appropriation.
The most telling quote is “New Jersey’s Pension Situation is One Stock Market Correction Away from a Disaster!”
