– 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 law guaranteed by states.
Thus the shortfalls legally must be made up by state governments, who currently are broke. This is prime territory for populist / taxpayer revolts as in, no way I will pay more taxes to fund public pensions at 100% after losing my own pension / job / house, and could get real ugly real quick.