Don't know whether this is click-bait or just another day at the opera:
"Over the past year we have provided extensive coverage of what will likely be the biggest, most politically charged, and most significant financial crisis facing the aging U.S. population: a multi-trillion pension storm, which was recently dubbed "one of the most heated battles of a lifetime" by John Mauldin. The reason, in a nutshell, why the US public pension problem has stumped so many professionals is simple: for lack of a better word, it is an unsustainable Ponzi scheme, in which satisfying accrued pension and retirement obligations requires not only a constant inflow of new money, but also fixed income returns, typically in the 6%+ range, which are virtually unfeasible in a world where global debt/GDP is in the 300%+ range. Which is why we, and many others, have long speculated that it is only a matter of time before the matter receives political attention, and ultimately, a taxpayer bailout.

That moment may be imminent. According to Pensions and Investments magazine, 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."



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

Not click bait.

This is a federal agency that is supposed to save people with defined benefit pensions that are either looted or mismanaged and in the hands of the federal Pension Benefit Guaranty Corporation (PBGC), the FDIC of private pensions.

Like Social inSecurity, PGBC is massively underfunded and will implode in the not to distant future. This new entity to supposed to head that off. Sure.....

It (all Social Security/Defined Pensions etc) come crumbling down in our lifetime. Social Security as the world's largest Ponzi scheme will be the end times.

It seems to be a reality that unfunded pension obligations greatly exceed any conceivable amount of money to pay them.

Attempts to handle this by borrowing from the US Treasury are hopelessly idiotic.

There needs to be a way to spread the disappointment among the maximum number of people, to “get the most feathers from the geese with the least squawking.”

quote:

There needs to be a way to spread the disappointment among the maximum number of people, to “get the most feathers from the geese with the least squawking.”

thanks for the clarity

I do believe new rules were enacted that, bottom line, results in requiring pension funds to keep less money to cover future obligations.

The entire concept of retirement as we know it (as a government sponsored extended vacation from late middle age until death), is about to collapse. As soon as the bulk of the baby boomers try to retire, SD will go into deficit. The SSA will need to draw from the trust fund, at which point it will become glaringly apparent that the trust fund dies not really exist. At the same time, the public employee and the few remaining private defined benefit pensions will be hitting the wall. And let's not forget what a stuck bleeding fiscal pig Medicare is.

Unless you have a lit of your own money, be prepared to work until 75 or later.

quote:

Originally posted by BBMW:


Unless you have a lit of your own money, be prepared to work until 75 or later.

Which may not even be possible, as a significant portion of the population will be hopelessly unemployed or underemployed in the future due to technological advancement.

Agreed.

quote:

Originally posted by sasquatch28:

quote:

Originally posted by BBMW:


Unless you have a lit of your own money, be prepared to work until 75 or later.

Which may not even be possible, as a significant portion of the population will be hopelessly unemployed or underemployed in the future due to technological advancement.