krebscycle

From the New York Times on Detroit’s pension plan troubles.

>”German banks were big buyers of Detroit’s pension debt; now they are complaining that they were told it was sovereign debt, as if it were issued by a national government.”

They were told? By who? Some guy in the Admiral’s Club Lounge? Aren’t they supposed to be sophisticated investors, with lawyers and accountants and finance experts? If they didn’t know the difference between national and municipal debt who let them run a bank? Shouldn’t that person be in jail? Didn’t it occur to them that the interest rates were higher for Detroit pension fund debt because it was, like, riskier.

Those lazy Greeks will be blamed for it all, no doubt.