University of Chicago Economist Eugene Fama on Illinois Bonds

How do you feel about buying Illinois bonds? Well, in the short term, they’re OK. In the long term, I wouldn’t touch them. The [state’s] pension liability is much worse than [the reported $100 billion that] people think. How so? States discount their liabilities—I think Illinois uses a discount of 7.5 percent [it’s between 7 [...]