Mike “Mish” Shedlock
Global Economic Analysis.blogspot.com
The ticking time bomb of over-promised, underfunded public pension plans has finally exploded. Here are a few headlines to consider:
Pension Fund of San Diego/Pension’s loss may add to San Diego’s money woes
Economic crisis hits IMRF, tax increases might be needed
Pension Crisis Looming In Canada
NY state pension fund down 20 pct since April
US public pension funds face big losses
The above is just a random sampling of hundreds of articles about pension plan woes. 40% of pension plans are underfunded and that assumes future returns of 8% annually. Good luck with that. Now think how bad things will be if the S&P drops to 600. Go one step further and think about what might happen if the US heads into an economic slump similar to Japan. More
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