>> the city won. >>> steve malanga, this is going to happen to more places? >> a lot of places are approaching this. whether they get bailed out by the states is an open question. but you have vallejo, california central falls rhode island. and cuts for retirees. so we are seeing this, absolutely. >> john: and cities and states unlike the federal government can't print money. >> that is for sure. >> john: in a way it's a goodies palestinian but it's people like you that suffer. >> the problem, the pension funds is not form of borrowing, it's just like debt. technically cities and states can't run deficits. they choose to run them in the pension funds. politicians make promises. you want to fund my ira by borrowing my money from credit card now i fund but i owe this money on credit card. that is not funding my irar. another form of debt, hidden debt and that is what they are regularly on. >> john: but in richard, they had an accounting firm you are going to go probing in "x" years and they did nothing? they are supposed to be the responsible party. >> what hap