People lending money with the fear of losing money is what makes people act responsibly…..it is a very important ingredient in our economic system.
Essentially one could view deferred compensation like pension benefits and medical benefits as loans to the government. Was union leadership irresponsible for accepting IOUs so the city could continue to go on a spending binge. If you loan your buddy some money and expect to be paid back you don’t send him to vegas with your friends when he gets paid. The ultimate battle going on right now is did the Public Employee Unions make a bad loan and need to take a hair cut or do they deserve a bailout at taxpayer expense. The money no longer exists so somebody has to lose.