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View Full Version : US cities face half a TRILLION dollars of pension deficits


carguym14
October 12, 2010, 10:57
Not really news for those of us here........

http://www.cnbc.com/id/39626759


Big US cities could be squeezed by unfunded public pensions as they and counties face a $574 billion funding gap, a study to be released on Tuesday shows.


The gap at the municipal level would be in addition to $3,000 billion in unfunded liabilities already estimated for state-run pensions, according to research from the Kellogg School of Management at Northwestern University and the University of Rochester.

“What is yet to be seen is how this burden will be distributed between state and local governments and whether the federal government will be called upon for bail-outs,” said Joshua Rauh of the Kellogg School.

The financial demands of unfunded pension promises come as state and local governments grapple with years of falling tax revenue related to the recession



Federal Government bailout???How will that work?

gates
October 12, 2010, 11:16
remind me again... how much is in those 401K and IRA accounts:-) it will be for the common good ya know...

2barearms
October 12, 2010, 13:29
I've been telling anyone who'll listen about this for months, this of course
was figured on the low end of what the reality will be. $5,300 per employee
where's the rest going to come from.

motosapien
October 12, 2010, 14:40
And this train wreck was already a certainty before the depression and the now anemic tax revenues. Tax increases of a level needed to alleviate the problem would bring a popular uprising. They will default on their obligations. All the entitlement programs will default.

The proper view of nearly all taxation at this point is larceny. They are stealing our treasure knowing full well they will be reneging on the broad promises that citizens accepted in exchange for it.