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Mar 02, 2012, 03:57 PM
Tu ne cede malis
MtnGoat's Avatar
Discussion

NY Pension fund borrows from itself to pay itself


The irrational tomfoolery of keynesian thinking reaches it's apex in this wonderful example.....cities borrowing from the pension funds to pay them.

Your wise rulers have good intentions, but that's not good enough in the real world as it actually is.
Mar 02, 2012, 05:27 PM
Kekistani Pride
RCWorks's Avatar
What happens when the money well runs dry? That will be where the fun begins.
Mar 02, 2012, 05:41 PM
BE77 Pilot's Avatar
Quote:
Originally Posted by RCWorks
What happens when the money well runs dry? That will be where the fun begins.
Obviously nothing, it ran dry years ago and everything is just fine. It is fine right? I mean can't we keep borrowing forever?
Mar 02, 2012, 05:41 PM
foamie re-cycler
daddiozz's Avatar
Quote:
Originally Posted by RCWorks
What happens when the money well runs dry? That will be where the fun begins.
me thinks that well already ran dry ,this is regurgitation..I wonder how many times they can get by with that before something starts smelling?
Mar 02, 2012, 05:54 PM
BE77 Pilot's Avatar
Quote:
Originally Posted by daddiozz
me thinks that well already ran dry ,this is regurgitation..I wonder how many times they can get by with that before something starts smelling?
Something already has started smelling.
Mar 03, 2012, 08:45 PM
Registered User
The original article is not available unless one subscribes to the New York Times.
Mar 03, 2012, 09:22 PM
Figure Nine Champ
madsci_guy's Avatar
Google is your friend, Jim

http://www.nytimes.com/2012/02/28/ny...-it-first.html

Quote:
ALBANY — When New York State officials agreed to allow local governments to use an unusual borrowing plan to put off a portion of their pension obligations, fiscal watchdogs scoffed at the arrangement, calling it irresponsible and unwise.
If the link asks for a login, just Google and follow the proper link. Works only once.

http://www.google.com/search?q=genev...w=1090&bih=530
Mar 03, 2012, 10:44 PM
Registered User
when the public money is all gone, they'll find a way to confescate private pension funds to keep the public ones afloat.
Mar 04, 2012, 06:37 AM
Registered User
UlteriorModem's Avatar
Quote:
Originally Posted by logan5
when the public money is all gone, they'll find a way to confescate private pension funds to keep the public ones afloat.
Hell yea! Spread the wealth baby!!!
Mar 04, 2012, 10:22 AM
Kekistani Pride
RCWorks's Avatar
Quote:
Originally Posted by UlteriorModem
Hell yea! Spread the wealth baby!!!
Nice of them to spread the wealth to their friends and spread poverty to the people that made said money...
Last edited by RCWorks; Mar 04, 2012 at 11:00 AM.
Mar 04, 2012, 10:56 AM
Registered User
If I read my pension plan figure right, last year there was a payout of $1.6 billion. There was a little over a billion income from employees and state contribution, and $2.9 billion in investment income. An unusually good year for investment, 23.8% return. Total investment fund is $14.3 billion. New employee contributions are going to go up from 8% to maybe 17.5% over time. Pension plans are supposed to make money to provide pensions which total more than initial investment. I presume this is happening here, with payouts being more than non investment income. Investment income has average better than 8% over the last 20 years. So one could think of the plan borrowing from itself to pay current pensions
Mar 04, 2012, 01:46 PM
Suspended Account
Quote:
Originally Posted by RCWorks
What happens when the money well runs dry? That will be where the fun begins.
it is already dry

all they do now is play numbers games to make it look like money exists

this is all the fault of leftists
Mar 04, 2012, 06:43 PM
Registered User
Here is an interesting read about public pension fund investments. It is my impression that pension funds are the largest class of investors in the market, but I could be wrong. The figure of 8% return is mentioned several places. That will double your money in nine years.

http://www.stateline.org/live/detail...ntentId=509250
Mar 05, 2012, 09:24 AM
Registered User
Jim,

That article is from 2010.

2011 was the worst year ever recorded for home sales. The stock market is up, for now. It usually rises in an election year, regardless of who is running for the presidency,. 2008 was an exception due to the market collapse.

The big question with pension funds is how they will work after the US debt collapses. This is not a Democrat/Republican party is responsilbe issue either. It is GOING to happen. It is unlikely that the US will defecit spend less than a trillion a year for the remainder of it's sovereignty, regardless of who is in power, since the majority of Americans are very comfortable living in debt and spending beyound their means. Even running only one trillion dollar a year defecits the interest on the debt will be unservicable in less than 10 years.

Inflation, will most likely, make all pensions worthless at that time.
Mar 05, 2012, 05:02 PM
Registered User
My figures on my pension fund were for last year. The questions you raise are not just about pension funds, but about concerns for all investors. I think your comment about Americans living in debt, and therefore being comfortable with the country being in debt are quite correct. However, I think I read or heard somewhere that the amount of private debt has gone down over the last couple of years. So maybe we are getting our heads out. Personally, I have no debt, and have not had any for maybe ten years or more.


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