Monday, August 7, 2017

"Pension Funds: What Could Possibly Go Wrong?

"Pension Funds: What Could Possibly Go Wrong?
State and Local Pensions Average 0.6% Return In 2016 
(Despite 7.6% Return Assumption and Chronic Underfunding)"
by Snake Hole Lounge

"The US Federal government is spending at a fast and furious rate. US Federal Spending is rising at a staggering $428,253,120 per day while US Federal TAX Revenue is only rising at $129,857,760 per day. That is almost a ratio of 2x tax revenue: (Click images for larger size.)

Meanwhile, US public debt is skyrocketing:

While the Federal government further indebts citizens, the US personal savings rate in declining at a rate of 24% YoY:

Then we have the underfunded pension funds of American, both private and public.  Public pension funds earned a dismal 0.6% in 2016:

According to the Center for Retirement Research at Boston College. public pension funds are also underfunded at 67.9% as of 2016:

Rotten returns coupled with chronic underfunding. Who are those guys?"

What could possibly go wrong?

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