Yesss!!! Hidden Pension Fiasco May Foment Another $1 Trillion Bailout by Taxpayers

Last time I looked, private pension funds had a similar sized unfunded liability, so make that TWO trillion!

No, wait! Include Unsociable Insecurity and the total is THREE!

But that's no proble, just $9K for every man, woman and child in the US. We can afford it. Just have a one time "wealth tax."
 
“What appears to be a riskless strategy is actually very risky,” says David Zion, director of accounting research for New York-based Credit Suisse Holdings USA Inc.
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In the CTA deal, the fund borrowed $1.9 billion by promising to pay bondholders a 6.8 percent return. The proceeds of the bond sale, held in a money market fund, earned 2 percent -- 70 percent less than what the fund was paying for the loan.
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so...borrow @ 6.8%, then put on money market to earn 2% appears to be riskless??? wtf is wrong with those people?
 
Quote from greddy:

Baby boomers can watch re-runs of
"Leave it to Beaver"

It should at least bring back memories of the
good old days.
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Every idiot in this crisis has been a baby boomer. Let them rot. Maybe when their parents who fought WWII told them stop taking acid and grow up, they should have listened.
 
Quote from Joe Doaks:

Last time I looked, private pension funds had a similar sized unfunded liability, so make that TWO trillion!

No, wait! Include Unsociable Insecurity and the total is THREE!

But that's no proble, just $9K for every man, woman and child in the US. We can afford it. Just have a one time "wealth tax."
More...

9k?

It's already 36k for every man, woman and child.

And that's just now.

Now, multiply that figure by 200% at least, and subtract the men, women and children (obviously) that either don't work and/or don't pay taxes.

The taxpayers are going to have an enormous, and unmanageable amount of debt.

And that's just what David M. Walker warned us against.

We had close to 60 trillion in unfunded liabilities, according to him.

I wonder what that figure is now.

I.O.U.S.A. should be mandatory for every American.

*And yes, pension funds are invested, whether they now know it or, or soon find out, in derivatives. Nice.
 
A lot of public pension funds jumped on the stock market bandwagon in the early Bush years. They got annihilated in 3Q08, but the liars did not write down their portfolio because the downturn was considered temporary (they don't follow GAAP). 4Q08 results have yet to be published, but it is 1Q09 that will show loses of 70% or more.

Unlike private investors which will sell when they see the writing on the wall, these large government run pensions funds are like the Titanic when it comes time to change direction and will go down just as impressively.

They are probably the biggest losers when it comes to AIG, C, FRE, FNM, LEH, etc..

The assumptions these pension funds used was already laughable to begin with. They projected 8% to 10% growth in assets and future liabilities were absurdly discounted. Had they used realistic numbers, states would not have been able to balance their budget. So there was a vested interest in manipulating the numbers as much as possible and let the next guy worry about it. On top of all this manipulation, they were still pension funds Even with all this manipulation, there was still widespread reports of unfunded liabilities.

If you had to sum it all up: we're fucked! Even if there was no financial crisis and GDP was growing at a healthy 3%, we still would be facing major pension fund problems. Simply more resources have been promised than exist. :D
 
Pa. pension funds warn lawmakers of major losses
By MARK SCOLFORO , 02.17.09, 02:19 PM EST

Pennsylvania's two major public-sector pension plans handed some frightening news to state lawmakers Tuesday: The combined value of their investments fell more than $28 billion last year.

Officials overseeing the separate funds for state workers and public school employees also warned that a sharp increase in taxpayer subsidies is looming, because a long-anticipated 2012 rate spike could be much steeper than recently projected.

The percentage losses on investments were similar. The value of State Employees' Retirement System investments dropped 28.6 percent in 2008, while Public School Employees' Retirement System investments fell 29.7 percent.

"We recognize that such a steep projected jump in employer contribution rates would present the commonwealth with a severe budgetary challenge," wrote State Employees' Retirement System chairman Nicholas J. Maiale, in remarks released shortly before the funds' top executives were scheduled to testify before the state House Appropriations Committee.

The State Employees' Retirement System, which benefits mostly state workers, valued its investments at $24 billion as of Dec. 31, a drop of $11.5 billion for the year.

The Public School Employees' Retirement System, which benefits teachers and other school employees, reported a six-month loss in value of $17.3 billion to $45.4 billion from the beginning of its fiscal year on July 1 to Dec. 31.

The state employees' pension fund said the losses mean employer contributions could approach 29 percent of payroll by 2012, far higher than had been expected after its investments had generated impressive returns in recent years. For most people enrolled in the State Employees' Retirement System, the government is their employer.
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The teachers' pension fund said it projects the spike could exceed 28 percent for the 2012-13 year. If that occurs, the pain will be felt most acutely by people who pay property taxes to fund school districts.
 
And OBAMA and his Clown's want the American Idiot to trust that GOV will do better for him/her than what an individal can do for him/her self.

Let the TEA PARTIES turn into a pure and simple Revolution. Does not have to be violent. But let the REVOLUTION begin! I use to think FIGH CLUB was a bit over the top. Now, I'm rethinking that idea. I use to think owning Guns, ammo, Food and a safe full of Money was over the top. Now I own all of that.

I thought that TEXAS was the worse place for me to live when I relocated. Now I know it's one of the Safest in the Country.

LET THE TRUE TEA PARTY BEGIN!!!!
 
Quote from EMRGLOBAL:

And OBAMA and his Clown's want the American Idiot to trust that GOV will do better for him/her than what an individal can do for him/her self.

Let the TEA PARTIES turn into a pure and simple Revolution. Does not have to be violent. But let the REVOLUTION begin! I use to think FIGH CLUB was a bit over the top. Now, I'm rethinking that idea. I use to think owning Guns, ammo, Food and a safe full of Money was over the top. Now I own all of that.

I thought that TEXAS was the worse place for me to live when I relocated. Now I know it's one of the Safest in the Country.

LET THE TRUE TEA PARTY BEGIN!!!!
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Dude, you already won your argument. There is nothing anyone can do now. It's game over, all you have to do is sit back and laugh or cry depending on your level of sadism. I agree with you on Texas though. It will probably be the last state left standing.
 
This is old news. But no one would listen. Now, when some one goes to retire,and they can't..............

My wife said, they'll just have to keep working. Where? You're 62. They'll get a 22 year old for half the money. If you work for the government, or some assembly line, should one exist, you're gone.

In Florida, 5% paycut for those about100,000 dollars. Not enough.

It was reported three years ago NJ didn't make a contribution to Teachers' Pension in 11 years.

We all take care or our own obligations, but these people can't do the right thing, because they are looting the public. Notice, btw, you've heard nothing of the Syracuse Carpenters' Union? The one Madoff looted? Why not? Isnt' that strange? And there are plenty more. Plenty.
 
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