The Conservative Cave
Current Events => Economics => Topic started by: Chris_ on October 14, 2010, 11:08:01 PM
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Business Insider (http://www.businessinsider.com/city-pensions-run-out-of-money-2010-10)
The municipal pension crisis is like the social security crisis but worse: Unlike the federal government, cities cannot legally go into debt.
This imminent disaster is described in a new paper out by Robert Novy-Marx and Joshua Rauh [PDF].
Novy-Marx and Rauh say most cities are burdened with unfunded liabilities, which are ignored by common accounting methods. Unfunded liabilities equal around $15,000 per household nationally, and up to $41,000 per household in some cities.
These cities are running out of money and will have to raise revenue or cut benefits to stay solvent.
Link (http://www.businessinsider.com/city-pensions-run-out-of-money-2010-10)
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...and then you add in county, state and federal pensions and we're talking some real
money debt here.
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WOW!! If they are starting to bring this up now, you it's about to hit these states hard soon!! I'm in one of them unfortunately, Boston. Land of the la-la liberals. :mental:
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Kind of surprised Detroit is so low on the list.
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Blacks make up 1/8 of the population but 1/3 of the cities in trouble are run by blacks.....just say'n.
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Blacks make up 1/8 of the population but 1/3 of the cities in trouble are run by blacks.....just say'n.
Black Dims. If people would wise up and elect some conservative, business oriented black politicians, aka Republicans, I'd bet the cities wouldn't be so screwed up.
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The site is down for maintenance at the moment. :(
I was curious to know if Las Vegas made the list.
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Even though city and state pensions are unfunded, there are trillions of dollars in them unlike the S.S. fund. Greedy politicans are eyeing this pot of gold. Buddy Roemer, ex Gov of LA, tried to raid the state pension fund in the 80's and put IOU's in there to cover budget shortfalls.