Shortfall on Pension Plans
Gary was reading me “Thoughts from the Frontline” by John Mauldin this morning while we were sitting in the cockpit and I was drinking my coffee. Normally I don't pay 100 % before coffee, but a couple of things hit me while I was listening. John goes on to talk about the USA cities and states primarily and the pension funds that have been promised to all government workers, and how they have all based their interest on their funds on 7% returns, and further with a lot of facts to back this up states that they are getting close to 3% return on their bonds and stocks. So the money has to come from somewhere, and it seems to be tied back to the taxpayers. Either the property owners or the state taxes. If you wish to read the entire article it can be found at http://www.mauldineconomics.com/frontlinethoughts/promises-promises-pension-promises Normally I don't get too involved with the economics papers, sort of the lesse faire attitude, that what will be will