The CalPERS [The mismanaged, incompetently-run State of California pension fund] financial bomb has gone off. The blast wave hasn’t arrived to knock us all down is all.
A deficit of $7.4 billion is projected for CalPERS by the end of the year. Look, I like unions and believe people deserve good pensions. But the simple financial [...]
Posts Tagged ‘public pensions’
CalPERS financial explosion
Another California city considering bankruptcy
Pacific Grove CA may follow Vallejo in filing a Chapter 9 bankruptcy. A primary reason is that CalPERS, the state pension fund, is facing huge losses and can force public agencies like Pacific Grove to make up the difference.
A judge recently ruled that the Chapter 9 bankruptcy by Vallejo gives them the authority to break [...]
Public pension funds. The next bailout
Some facts
- Public pension liabilities as of Dec. 19 were $2.9 trillion. Totals assets were $2 trillion.
- Many public pension funds recently made disastrous bets they could sell bonds and invest the money at higher rates. They were wrong. Thus, they are now losing even more money than previously.
- Public pension fund debts are by [...]
Massive taxpayer backlash over pension crisis is coming
Think about all those people who have lost houses, jobs, or private pensions. Now contemplate what their response will be when their states tell them taxes must be raised so as to fully fund public pensions.
State pensions lost $865 billion last year. 57% of money for police and fire services nationwide goes for pensions.
From Mish, [...]
