Opinion What's going to happen when the local and state pensions in America go bust?

S

superpunch

Banned
Banned
Joined
Oct 17, 2015
Messages
21,165
Reaction score
4,676
Lots of state pensions guarantee absurd rates of return like 7.5% forever. Lots of these pensions are only 60% or 70% funded, leaving many unfunded with no real plan to make up the difference.

IMO as the boomers continue to retire, eventually these plans are going to go bust. What will happen? Will they shift their unfunded liabilities onto state taxpayers? Will the federal government bail them out? Will the retirees just not get their promised money?
 
Surely all the illegals that liberals cheerleaded to come here and drain our coffers will save the day.

Right???
 
Public sector pensions should be illegal and the sum currently owed should be divided for all workers. People who currently are set to receive a pension should of course get theirs, but no new pension for new public sector workers.
 
superpunch said:
IMO as the boomers continue to retire, eventually these plans are going to go bust. What will happen? Will they shift their unfunded liabilities onto state taxpayers? Will the federal government bail them out? Will the retirees just not get their promised money?
Click to expand...
social security can't last forever as well, the problem with this country is that we allow trillions to be sheltered in tax havens and refuse to close loopholes in case Jeff Bezos has to pay $10 billion in taxes out of a $40 billion yearly income. the solution could include quantitative easing or borrowing from the revenues of publicly funded programs, pick your poison. but somehow the public always gets screwed.

bobgeese said:
Surely all the illegals that liberals cheerleaded to come here and drain our coffers will save the day.

Right???
Click to expand...
<31><{danayeah}>
 
The only pension members of Congress should have is one that every American citizen has.
 
sabretruth said:
Public sector pensions should be illegal and the sum currently owed should be divided for all workers. People who currently are set to receive a pension should of course get theirs, but no new pension for new public sector workers.
Click to expand...
People who invest in private investment funds have to accept funding shortcomings and eat their losses. Why should government employees be treated as a different, higher class of people than private citizens?

IMO this is a risk they should have assessed when signed onto perpetual 7.5% returns and 'borrowing' money from their pension funds.
 
It's gonna fuckin suck.

Our generation is gonna have to take it up the ass, while we bend over n pull ourselves up by our bootstraps.

As usual.

So smile wide, little corporate slave, like a Yes Man should.

Kill debt. Save knowledge. Accumulate assets. Love family and friends. Be prepared.
 
Just watch Illinois. It’ll hit us first
 
Coronavirus could still wipe out a high percentage of people currently receiving pension.
 
superpunch said:
People who invest in private investment funds have to accept funding shortcomings and eat their losses. Why should government employees be treated as a different, higher class of people than private citizens?

IMO this is a risk they should have assessed when signed onto perpetual 7.5% returns and 'borrowing' money from their pension funds.
Click to expand...

What makes you think Coronavirus won’t solve the pension crisis? (Bad humor.)
The problem you highlight (pension insolvency) is certainly true and isn’t an isolated issue. Many aspects of our economy-hell, Capitalism period-are built on perpetual growth. You state 7.5% being unrealistic: even 3% is unrealistic. The longer the time period the less the realistic rate of return. Compound interest, in a way, is a fiction.

I try to illustrate this to friends I help understand investing with an example; imagine you had a friendly ancestor 1,000 years ago. He decided to invest $1 for you; just a one-time $1 investment. You get a modest 3% return; congratulations, you now have more money than everyone else on Earth.

This is why our economy has become so financialized; we had to develop new ways to “make” money, so complex derivative markets were developed. We had reached the limits of real growth, or near enough for our needs. The problem is that derivatives are nonsense.

TS, I realize none of that answers your question. To answer: we will probably have to have a sort of global “debt jubilee” where all debt everywhere is simply mutually agreed to be erased. This might just take the form of global hyper-inflation. This will save it and prop up the system for a while longer. Hopefully your pension is indexed to increase with inflation!
 
i'm not going to lie, i like watching all these "highly educated" people look bad decisions right in the eye
 
Immigrants will put off having their 4th kid and step up to the plate to help out.
 
bobgeese said:
Surely all the illegals that liberals cheerleaded to come here and drain our coffers will save the day.

Right???
Click to expand...

too bad Trump never saved the day (you know the guy you elected and actually has power unlike whining liberals you deflect to) by building that wall he promised Mexico would pay to stop all the illegals from crossing over

partisan politics are a huge failure in USA
 
Last edited:
pollice verso said:
social security can't last forever as well, the problem with this country is that we allow trillions to be sheltered in tax havens and refuse to close loopholes in case Jeff Bezos has to pay $10 billion in taxes out of a $40 billion yearly income. the solution could include quantitative easing or borrowing from the revenues of publicly funded programs, pick your poison. but somehow the public always gets screwed.


<31><{danayeah}>
Click to expand...
<bball1>

Jeff Bezos doesn't have a $40 billion yearly income. His "net worth" isn't even liquid, it's the value of his 16% stake in Amazon, and he's never taken a stock award. His salary is $82k.
 
Government employees with their cushy pensions, gravy holiday schedules yet somehow offer the worst possible customer service.
 
Fanu said:
too bad Trump never saved the day (you know the guy you elected and actually has power unlike whining liberals you deflect to) by building that wall he promised Mexico would pay to stop all the illegals from crossing over

partisan politics are a huge failure in USA
Click to expand...


LOL

Google “Mexico has become the wall”.


PS the wall will be 1/3 complete in his first term, + bonus immigration law reform.


<GinJuice>
 
You must log in or register to reply here.

Similar threads

LeonardoBjj
Economy Oil and gas firms must pay more to drill on public lands under new Biden rule
2 3
Replies
46
Views
986
Sinister
Sinister
LeonardoBjj
Social Syphilis and other STDs are on the rise. States lost millions of dollars to fight and treat them
2
Replies
39
Views
1K
LMP
LMP

Latest posts

Forum statistics

Threads
1,236,915
Messages
55,454,672
Members
174,787
Latest member
Gladiator47

Share this page

Back
Top