GASB Loopholes Created Illusions of Solvency

By Edward Ring
What if most of the public employee compensation enhancements of the past decade or more in California were based on inaccurately optimistic government financial statements? Or to be blunt, what if government decision makers thought they could afford these compensation enhancements, because the information they relied on used accounting gimmicks that would land a person...

TAGS: California Policy Center, Moody's Investor Services, Pension Obligation Bonds

Municipal Credit Ratings May Crumble Under New Rules

By Edward Ring
Everyone remembers how thousands of bankers and millions of homeowners were caught by surprise when the real estate bubble collapsed in late 2008. One of the major reasons this prodigious bubble was allowed to inflate in the first place was because credit rating agencies did not properly evaluate the financial risks inherent in collateralized mortgage...

TAGS: Moody's Investor Services