The next Greece may be in the U.S.

Marketwatch reports:

In many states, public pensions are protected by state constitutions or statutory law, and as a result are afforded many privileges, according to a Center for Retirement Research report.

In legal circles, this has come to be known as “pension supremacy” and it is a real headache for bond investors.

In Chicago, the state’s constitution dictates that pension benefits for current workers “shall not be diminished or impaired.” New York carries a similar clause, while Hawaii, Louisiana, and Michigan have constitutional provisions that have been interpreted as protecting all pension benefits earned to date.

It's not like we didn't warn you years ago.