“Joshua Rauh, associate professor of finance at the Kellogg School of Management at Northwestern University said that, without reform, some state pensions might run out within the decade. By 2030, as many as 31 states may not have the money to pay pensions. And, if these funds exhaust their assets, the size of payments for the benefits they have promised will be too large to cover through taxes, putting pressure on the federal government for a bail-out that could potentially cost more than $1,000bn, he says.”
This is potentially a one trillion dollar or more taxpayer bailout because state governments can’t keep their hands out of the cookie jar. I can’t wait for the unions to apply a heavy hand to Congress and the President while demanding these retirement funds are bailed out by us the taxpayers of this nation. We are not an unlimited ATM machine but apparently many in power have forgotten that fact. Where and when will it stop?
http://www.ft.com/cms/s/0/b9d90504-6379-11df-a844-00144feab49a.html
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