Wednesday, August 24, 2016

It's Not Just Government:
Major Corporations Are Also Underfunded
On Their Pension Plans
S&P 500 corporate pensions went from being fully funded just before the finacial crisis, in aggregate, to $375BN underfunded .. "The primary problem, of course, is the Fed's low interest rate policies which are crushing both sides of the pension equation .. Equity markets have largely dismissed pension underfunding issues as they reach higher highs everyday. That said, at some point the pension underfunding issue will deteriorate to a level that will be too large to ignore requiring either massive cuts in benefits for 1,000s of employees or government funded bailouts. We suspect we know which will be the more palatable to our elected officials."
LINK HERE to the article

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