Money and Finance
- John Mauldin: How Not To Run A Pension
For all the focus on the unfunded liabilities of Social Security and Medicare, there is another unfunded crisis brewing, and this one is in your own back yard. It’s coming to you even if you live outside of the US; it just might take a little longer...
- Pensions Find Riskier Funds Fail To Pay Off
Thanks to Phil for passing this along. Searching for higher returns to bridge looming shortfalls,public workers’ pension funds across the country are increasingly turning toriskier investments in private equity, real estate and hedge funds. But while...
- California Running Out Of Money Again
To quote economist Rich Farr, “...if California was its own country, it would be the world’s 9th largest economy, according to 2010 GDP data. With an annual GDP of $1.9 trillion, California’s economy is nearly the size of Italy’s and it is over...
- Mounting Debts By States Stoke Fears Of Crisis
The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners...
- Public Pension Funds Are Adding Risk To Raise Returns
Does anyone think this is likely to end well? States and companies have started investing very differently when it comes to the billions of dollars they are safeguarding for workers' retirement. Companies are quietly and gradually moving their pension...
Money and Finance
John Mauldin's Outside the Box - Looming Crisis: State Budgets Soon to Be Under Siege
In 2003, I was writing about the unfunded liabilities of state and local pensions. It was part of Bull’s Eye Investing, which came out in 2004. I caught some flak for being so pessimistic about the potential problems. Quoting:
Unless steps are taken soon, it is possible we can see shortfalls approaching $1 trillion–$2 trillion in state-sponsored pension funds within 10 years. A deficit of this size on the state level can truly be called a crisis. A tax increase or other adjustments to fund this will be a large drag on the economy.
Today in Outside the Box we explore the very sad fact that once again I was unduly optimistic. My good friend Ed Easterling shows that it is quite likely that the pension shortfalls are approaching $4 trillion. And the longer we wait to deal with the problem, the worse it will get.
- John Mauldin: How Not To Run A Pension
For all the focus on the unfunded liabilities of Social Security and Medicare, there is another unfunded crisis brewing, and this one is in your own back yard. It’s coming to you even if you live outside of the US; it just might take a little longer...
- Pensions Find Riskier Funds Fail To Pay Off
Thanks to Phil for passing this along. Searching for higher returns to bridge looming shortfalls,public workers’ pension funds across the country are increasingly turning toriskier investments in private equity, real estate and hedge funds. But while...
- California Running Out Of Money Again
To quote economist Rich Farr, “...if California was its own country, it would be the world’s 9th largest economy, according to 2010 GDP data. With an annual GDP of $1.9 trillion, California’s economy is nearly the size of Italy’s and it is over...
- Mounting Debts By States Stoke Fears Of Crisis
The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners...
- Public Pension Funds Are Adding Risk To Raise Returns
Does anyone think this is likely to end well? States and companies have started investing very differently when it comes to the billions of dollars they are safeguarding for workers' retirement. Companies are quietly and gradually moving their pension...