Nobel laureate economist William F. Sharpe, creator of the Sharpe ratio for risk-adjusted investment performance analysis, said public pensions in the United States are a “disaster” and “a crisis of epic proportions.”
“Idiotic accounting drives even worse economic decisions,” he contended. “This is the classic case of an organization that borrowed money while issuing purportedly guaranteed payments and then used the money to invest in risky securities. Where have we heard recently that this is not a good thing?”
Comment: The day to “act quickly” long passed in Illinois. Denial, delay, extending and pretending have prevailed.