When the boomers lose their pensions. That's when it will get violent.

[nutmeg]

Looking back, compounding the problem in the financial crisis, I think many endowments needed a 5% rate of return to maintain "status"

With low interest rates the endowments, had to participate in purchasing the MBS,(and other assorted products)which advertised a min 5% rate of return whether they believed it or not.

 

[denner]

Quote from nutmeg:

Looking back, compounding the problem in the financial crisis, I think many endowments needed a 5% rate of return to maintain "status"

With low interest rates the endowments, had to participate in purchasing the MBS,(and other assorted products)which advertised a min 5% rate of return whether they believed it or not.

I know...That's something that I've felt could bite them in the ass once again with this 4-5 years of ZIRP and the need to chase yield once again. Of course, a good amount of US exposure to Europe can be traced back to ZIRP as well.

It's why I believe insurers and pensions (and possibly endowments) will be in similar dire straits in the near future because this yield environment is even worse than the 2003-07 period. More toxic crap this time around as well.

 

[tortoise]

Quote from nutmeg:

Thanks for the correction. Too lazy to check my acronyms today.

PBGC is not an acronym. It's just an abbreviation.

 

[AKUMATOTENSHI]

The way things are going as a Gen "X" er I know the system will be )(*&ed and the Boomers will leave everybody with a mountain of debt. The country will be sold off, the Ameri can dream is dead we will be in stagflation indefinately. The growth is gone and generational warefare will ensue. The battle will waged when the old guard has no choice to step down. Average age of a US politician is 55 years old. They will probably hold onto power for another 30 years. I saw this in the last workplace I was in people who should have retired did not because thier life expectancy is longer that the current employment model. Boomers will ride it out until they are forced to leave or pursue a 2nd career. By that time the Gen "X" ers will have nothing and be a wasted American Generation. ie. The lost geeration the 13th generation. Gen Alpha and Beta will have a chance but. Gen "X" and "Y" were set up to fail from the start here in the states.
One of the options for Gen "X" and "Y" is to leave the country and see some prosperity. Living abroad has more economic possibilities because the system is locked up here.

Welcome to Planet Misery,

Akuma

 

[budcampbell]

Quote from AKUMATOTENSHI:

The way things are going as a Gen "X" er I know the system will be )(*&ed and the Boomers will leave everybody with a mountain of debt. The country will be sold off, the Ameri can dream is dead we will be in stagflation indefinately. The growth is gone and generational warefare will ensue. The battle will waged when the old guard has no choice to step down. Average age of a US politician is 55 years old. They will probably hold onto power for another 30 years. I saw this in the last workplace I was in people who should have retired did not because thier life expectancy is longer that the current employment model. Boomers will ride it out until they are forced to leave or pursue a 2nd career. By that time the Gen "X" ers will have nothing and be a wasted American Generation. ie. The lost geeration the 13th generation. Gen Alpha and Beta will have a chance but. Gen "X" and "Y" were set up to fail from the start here in the states.
One of the options for Gen "X" and "Y" is to leave the country and see some prosperity. Living abroad has more economic possibilities because the system is locked up here.

Welcome to Planet Misery,

Akuma

You have become too negative. It is the other way around, as the boomer generation is slowly becoming washed out. Look at the current leadership,it is riddled with failure. I am 56, but still young in my thinking. The future is yours, if your generation will only seize it and start "kicking ass" by coming up with new solutions and running some of these old jackasses off. "Only the Young".

 

[Scataphagos]

Quote from nutmeg:

"... Private pensions which go bust are funded by the PBGA .

Incorrect. PBGC is like an insurance fund.. with only enough in assets to cover <1% of its "insured" obligations.

 

[Scataphagos]

Quote from AKUMATOTENSHI:

The way things are going as a Gen "X" er I know the system will be )(*&ed and the Boomers will leave everybody with a mountain of debt. The country will be sold off, the Ameri can dream is dead we will be in stagflation indefinately. The growth is gone and generational warefare will ensue. The battle will waged when the old guard has no choice to step down. Average age of a US politician is 55 years old. They will probably hold onto power for another 30 years. I saw this in the last workplace I was in people who should have retired did not because thier life expectancy is longer that the current employment model. Boomers will ride it out until they are forced to leave or pursue a 2nd career. By that time the Gen "X" ers will have nothing and be a wasted American Generation. ie. The lost geeration the 13th generation. Gen Alpha and Beta will have a chance but. Gen "X" and "Y" were set up to fail from the start here in the states.
One of the options for Gen "X" and "Y" is to leave the country and see some prosperity. Living abroad has more economic possibilities because the system is locked up here.

Welcome to Planet Misery,

Akuma

Planet Misery, for sure.. but we Boomers will get hosed, too. Sure, some of us early ones will get something. But most Boomers will get FAR less in benefits than they paid-in-for, while the two generations before got FAAARRRR more than they paid-in-for. There was a story just this week about Boomers getting $100,000 LESS in SS retirement benefits than they paid in. (So, where did the rest of the money go? Government STOLE IT, of course.)

The only generation to make out on the Grand Social Experiment is the one BEFORE the Boomers.

I know younger folks like to "blame the Boomers"... it's not our fault... blame Congress for their many crimes and unconscionable greed.

 

[zdreg]

it is baby boomers' monies that has gotten the thieves in congress elected. be honest about it.

 

[morganist]

They should have used the CPR that would have solved the problem.

 

[taoistmon]

i would agree to this statement. it is a rather worrisome problem that no one seems to care or even think about. is it really all a ponzi scheme??? how many break downs are we going to have in the stock market- where pension, insurance - everyone who invests lose half or more than half of their initial investment value.

hence we are letting more and more immigrants into the country. to keep the 'system' going.
to keep our kids test scores high. because god knows our kids are fuggin lazy and not that A+ bright.
the longer you stay in the public education system- ie your generations to come - the dumber the kids seem to get.
ie you are not that smart as you could be.
meaning you will pass on less and push less and expect less. (rare cases where you will expect more).
this goes for the workforce as well...
rare is it that you will find ppl in companies that work at a high performance. most will do enough and will very often pass the buck. and let some of the hard working individuals to pick up the slack.
this is how it is.. and how it will be.
which is why the chinese workforce is more dedicated and bitch and moan less.
and their take over is pretty much inevitable.
america built china.
now china is building up africa.

question now becomes who will africa build up?

but back to the thread at hand.
they the boomers will already get old.. and the younger gen x will be the ones who get screwed. HARD...