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Thread: AS I stated Major pension crisis starting in 2017

  1. #271

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    The Feds could just lend them the 130 billion at 0% interest over a 1 year term with a perpetual rollover provision
    Problem solved. This would be pocket change on their existing deficit. Then all those fine Illinois State pensioners can
    feel good and continue spending away and contribute to the economy, and local, state and Fed taxes.

  2. #272

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    It Begins: Pension Bailout Bill To Be Introduced This Week

    http://www.zerohedge.com/news/2017-11-08/it-begins-democratic-senator-introduce-bill-taxpayer-funded-pension-bailouts#comment-10621372

    Democratic Senator Sherrod Brown from Ohio plans to introduce legislation that would allow struggling multiemployer pension funds to borrow from the U.S. Treasury to remain solvent.

    The bill, which is co-sponsored by another Democrat, Rep. Tim Ryan, also of Ohio, could be introduced as soon as this week or shortly after. It would create a new office within the Treasury Department called the Pension Rehabilitation Administration. The funds would come from the sale of Treasury-issued bonds to financial institutions. The pension funds could borrow for 30 years at low interest rates. The one, and painfully amusing, restriction for borrowers is "they could not make risky investments", which of course will be promptly circumvented in hopes of generating outsized returns and repaying the Treasury's "bailout" loan, ultimately leading to massive losses on what is effectively a taxpayer-funded pension bailout.
    “When I feel the heat, I see the light.”

    ― Everett Dirksen



  3. #273

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    Los Angeles: In Pension Denial


    LA WATCHDOG--Why are Councilmembers Paul Krekorian, the Chair of the Budget & Finance Committee, and Paul Koretz, the Chair of the Personnel Committee, and Mayor Eric Garcetti unwilling to be transparent about the City’s pension crisis that contributes to its never ending Structural Deficit and is crowding out basic services to Angelenos?

    Our friends who occupy City Hall tell us that they are addressing the $9 billion unfunded liability of the City’s two pension plans and the ever increasing pension contributions that now consume almost 20% of the City’s budget.


    http://www.citywatchla.com/index.php...pension-denial






    Spain’s Most Urgent Problem: Pension System About To Go Bankrupt

  4. #274
    Join Date
    Jan 2017
    Posts
    1,157

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    Managers of pension funds are so desperate for yield
    so that they sell volatility VIX.

    It looks like volatility has become an asset class in itself.

    http://www.zerohedge.com/news/2017-1...-starved-yield

    My note: risky business !

  5. #275

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    What's the real reason government pensions are suffering?

    http://www.chicagobusiness.com/article/20161205/BLOGS02/161209938#new_tab

    Though state and local government pension woes often get blamed on high benefits and low contribution rates, there's another factor, neatly highlighted by figures released today from Cook County Treasurer Maria Pappas: demographics, particularly the impact of an aging workforce.

    According to the data Pappas shared at a City Club speech today, 130 of the county's 549 taxing districts—schools, villages, cities and the like—have more retirees drawing benefits than current workers putting money in. And the ratio of workers to retirees is headed in the wrong direction.

    Retiree-to-worker ratios of 2-to-1 or even 3-to-1 are not uncommon.
    “When I feel the heat, I see the light.”

    ― Everett Dirksen



  6. #276

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    US markets up 200 percent, Illinois pensions down 65 percent

    The government released a report showing the state’s unfunded pension liability barely dropped to $129.1 billion from $129.8 billion in 2016. That was despite above-market returns from the pension funds.

    But the bigger story is how Illinois’ pension funds have collapsed – putting both state workers and taxpayers at risk – during one of the longest bull markets in history.

    Since the end of the Great Recession, the S&P 500 index has recovered and grown by more than 200 percent, including reinvested dividends, to reach record highs.

    At the same time, Illinois’ pension shortfall worsened by 65 percent, to reach $129.1 billion. In 2009, it was $78 billion.

    “When I feel the heat, I see the light.”

    ― Everett Dirksen



  7. #277

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    Quote Originally Posted by redraspberry View Post
    What's the real reason government pensions are suffering?

    http://www.chicagobusiness.com/article/20161205/BLOGS02/161209938#new_tab

    Though state and local government pension woes often get blamed on high benefits and low contribution rates, there's another factor, neatly highlighted by figures released today from Cook County Treasurer Maria Pappas: demographics particularly the impact of an aging workforce.

    According to the data Pappas shared at a City Club speech today, 130 of the county's 549 taxing districts—schools, villages, cities and the like—have more retirees drawing benefits than current workers putting money in. And the ratio of workers to retirees is headed in the wrong direction.

    Retiree-to-worker ratios of 2-to-1 or even 3-to-1 are not uncommon.
    The demographic info was well known 20 years ago, but they didn't compensate for it. Sounds to me that a lot of the prohibitive state laws need to be either re-written or revamped. I'd be surprised if they were allowed to invest in the stock market, as most gravitate or are forced by law to stick to low risk bonds, treasuries etc. Happens to be hard on savers as well.
    ...be your own Health Care System... grow your own and eat well

  8. #278

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    Quote Originally Posted by digbird View Post
    The demographic info was well known 20 years ago, but they didn't compensate for it. Sounds to me that a lot of the prohibitive state laws need to be either re-written or revamped. I'd be surprised if they were allowed to invest in the stock market, as most gravitate or are forced by law to stick to low risk bonds, treasuries etc. Happens to be hard on savers as well.
    The latest bonds they sold ($5B) are being backed by future tax revenues, this only makes matters worse for the future as those too will be have to be made up.

    When discussing online with my leaders of the state and their representatives they all think we can fulfill the promises. There just is no way. Unfortunately it is written in the state constitution and that is what they all fall back on. Never mind the state constitution defies reality.

    Only three ways out, change the constitution, get a bailout from the feds or get the feds to allow bankruptcy for the state.
    “When I feel the heat, I see the light.”

    ― Everett Dirksen



  9. #279

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    Quote Originally Posted by redraspberry View Post
    The latest bonds they sold ($5B) are being backed by future tax revenues, this only makes matters worse for the future as those too will be have to be made up.

    When discussing online with my leaders of the state and their representatives they all think we can fulfill the promises. There just is no way. Unfortunately it is written in the state constitution and that is what they all fall back on. Never mind the state constitution defies reality.

    Only three ways out, change the constitution, get a bailout from the feds or get the feds to allow bankruptcy for the state.
    Yes, I agree with you 100%. Seems like those in power don't have any common sense. Band aids only work for so long before they too have to pay the piper.
    ...be your own Health Care System... grow your own and eat well

  10. #280

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    Non issue - fed bailout that cost virtually nothing on books. 0 per cent interest loan for shortfall with yearly rollover.
    The tax paid by the now whole pensioners will cover the small interest shortfall of 0 % interest

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