RE: Private Pension Bailouts - the NEW Social Security "Fix"
The fed knows that when the baby boomers start retiring en-masse, they're going to convert their stock holdings to something else (bonds etc) and the market is going to tumble very badly.
they're scrambling to try and fix the inevitable collapse of our economy by any means possible.
RE: Private Pension Bailouts - the NEW Social Security "Fix"
Quote:
Also, in the next 5-10 years we'll see a MASSIVE tax hike, no matter who gets elected.
We're dancing now but we're gonna have to pay the fiddler soon.
Probably right, although I don't see too many people dancing right now, I don't care what anyone says, the economy is still terrible.
I believe the "tried and true" method of preventing another depression is going to be sought. Mark my words, we're going to go into N. Korea and the vast majority of the "jobs" in the united states are going to be either directly or indirectly related to the military.
RE: Private Pension Bailouts - the NEW Social Security "Fix"
Congress can try any legislation they want, but it won't prevent companies from adjusting to changes, one way or another.
Longer life expectancies and higher retirement lifestyle expectations and demands, along with competition have created severe actuarial problems for pensions (as opposed to contributory plans, like 401k's and 403b's).
Ironically, only government itself still consistently offers true pensions as a matter of course. Most companies veered away from offering them years ago.
RE: Private Pension Bailouts - the NEW Social Security "Fix"
The PBGC, which was designed to protect worker's pensions from failure, is like social security in that it was unable to adjust to the massive changes that took place as life expectancies increased; increased pressure to produce profits on a quarterly basis also became a large factor in the decision to dismantle the pensions and replace them with plans like the 401k. The 401k and the 403b type plans allow a company to know in advance on a year to year basis what their benefit expenses will be and those plans basically disconnect the results from the stock and bond market returns for the company; those plans transfer the investment risk to the worker from the company.
What will you get at retirement with a 401k? That's now your problem, not your employers. Some will argue that that is as it should be, but the fact is that the volatility that occurs could transfer the risk back to the taxpayers on a large scale basis later on because of a variety of economic and business factors created by global economic changes and rampant government cronyism and stupidity.
The same can be said for health benefits provided for workers. In the beginning there was a semblance of stability in health care. The word stability no longer belongs in the same sentence with health care discussions or pricing. A massive health care collapse is coming soon.
RE: Private Pension Bailouts - the NEW Social Security "Fix"
Quote:
The same can be said for health benefits provided for workers. In the beginning there was a semblance of stability in health care. The word stability no longer belongs in the same sentence with health care discussions or pricing. A massive health care collapse is coming soon.
The only way they could collapse is with the institution of some sort of "universal health care" which would bankrupt the system in about 2 years. We're heading that way already though.
RE: Private Pension Bailouts - the NEW Social Security "Fix"
Quote:
Can one lift one's self in a bucket?
LOL, GREAT analogy.
And another kicker in the equation is the chinese economy, they refuse to float their currency which is killing the trading power (or what is left) of the united states, so we're trying to pressure them into doing it (they probably won't they're not stupid), but if they did, the results at home would be inflation........... anyway you look at it, we're in for a rough ride within the next 5 to 10 years.
[Deleted]
