- America’s underfunded pension system is “not a distant concern but a system already in crisis”…
- Tax may explode as governments seek to bail out insolvent pension plans
- Illinois, California, New Jersey, Connecticut, Massachusetts, Kentucky and eight other states vulnerable
- The simple mathematical mismatch at the heart of the pension crisis…
- Why the pension crisis really is “America’s silent crisis”…
- Pensions timebomb confronts Ireland, UK and most EU countries more …
Opinion: Now It’s global.
Reminiscent of the 2008-9 housing crisis, the contagion is in Europe as well. In 2007 global stock markets were rising daily, giving the feeling that the world had fully recovered from 9/11 and all would be right again.
In 2008, markets began to crack until September 15, 2008, when Lehman Brothers filed for bankruptcy. Uh oh, all was not well.
The US Federal Reserve swung into action. A new idea, Quantitative Easing, was announced and it would be years before most of us really understood it. The Fed used money manufactured from thin air to buy toxic mortgage bonds from failing banks in the US and Europe instead of letting the banks fail and reorganize.
For the next 8 years, a new young president rode the false recovery, bragging that his policies saved the world from a depression.
They didn’t, his economic policies conveniently postponed the day of reckoning for a future president. In the meantime, the young president who called his predecessor’s spending “unpatriotic”, spent more than all previous presidents combined.
While that was going on, pension administrators were busy telling government workers that they could retire with full benefits after 20 years of service.
They can’t. The malfeasance and outright lies were/are staggering.
Funny how we never heard a word about this growing pension crisis during the 2016 presidential race. If the government attempts to bail out pensions, it will need to attack America’s IRA and 401k plans that have somewhere in the neighborhood of $20 trillion.
The government could simply swap a portion of those plans for a 50-year government IOU, at say 2-3%.
I can’t help but wonder if that is why a Republican won last year?