A heartwarming story of financial innovation. (fp)
The guys who thought this was a good idea say “… that it has saved the school district $20 million it would have otherwise had to pay to cover the pension shortfall, and they maintain that no one could have predicted the credit crisis of 2008 that elevated the deal’s costs.”
First, the school district has had to pay $25 million that it did not expect to and does not really have.
Second, lots of people predicted just exactly this sort of thing. But the guys who came up with this innovation are long gone, onto the play fields of the rich, while the school district and its people are left holding the bag.
I am almost at the point where putting the words innovation and financial together should automatically result in an extended prison sentence.