Pension obligation bonds contributed to the chapter 9 bankruptcies of Detroit, Stockton, Calif., and San Bernardino, Calif. 

Nonetheless, expanding bubbled have lured government bodies into repeating past mistakes, this time at a new record pace.

Hooray! We broke the pace of 2008.

Main Street Pensions Take Wall Street Gamble

Please consider Main Street Pensions Take Wall Street Gamble

State and local governments have borrowed about $10 billion for pension funding this year through the end of August, more than in any of the previous 15 full calendar years, according to an analysis of Bloomberg data by Municipal Market Analytics. The number of individual municipalities borrowing for pensions soared to 72 from a 15-year average of 25.

Among those considering what is known as pension obligation borrowing is Norwich, a city in southeastern Connecticut with a population of 40,000. Its yearly payment toward its old pension debts has climbed to $11 million in 2022—four times the annual retirement contribution for current workers and 8% of the city's budget. The city will vote in November on whether to sell $145 million in 25-year bonds to cover the pensions of retired police officers, firefighters, city workers and school employees.