Oh, Math Does Win?

Posted 2012-04-03 12:31
by Karl Denninger
in States

1. How many iScams does a retired teacher buy when their pension collapses?

2. How many cars do they buy?

3. How many mortgages do they default on?

4. What assumptions are built into the economic projections that all the so-called "mainstream economists" have been making when it comes to these retirees?

5. Why aren't all these so-called "mainstream economists" out in the street living in a refrigerator box, and why aren't the politicians out there with them who have serially lied to the American people for the last three decades?

The Springfield State-Journal register reported over the weekend that pension director Dick Ingram sent a memo to his board on Feb. 9, saying he was no longer confident that the state’s largest pension system will continue to pay it enough money to stay above water. The state owes Ingram’s fund $43 billion.
He cited one forecast that the Teachers Retirement System could be insolvent by 2029.
Ingram said pension funding is under severe threat from the state’s unpaid bills, soaring Medicaid costs and the $85 billion in overall unfunded pension liability, which is expected to rise.
“If that is the case, the only other option available that would significantly change the amount owed is to reduce past service costs for active members and retirees,” Ingram wrote in the memo.

Got it?

This isn't future retirees. It's present retirees and future retirees.

I started writing about this roughly when I started The Ticker. I was called names and ignored. The truth is that those doing the name-calling were either ignorant or liars.

If you are counting on one of these pensions you are screwed.

Oh, and this is not Illinois-specific either.

Good luck.

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