And so it begins One by one, defined benefit pensions are going to go bust because they relied on growth and more people paying in, start with the private funds(http://www.zerohedge.com/news/2016-05-21/407000-workers-stunned-pension-fund-proposes-60-cuts-treasury-says-not-enough), then the public employee union funds and finally the big two, Social Security and Medicare. The problem is that you can’t spend money that doesn’t even exist and the stifling effects on growth for the last fifty years or so did not create the wealth that all those programs were planned on. They are ALL doomed
New accounting rules show Chicago has understated its pension liabilities by $11.5 billion.
At the end of 2015 the stated liability was $7.1 billion. Today it’s $18.6 billion. That’s a jump in net liabilities of 168%.
Mayor Rahm Emanuel has hopes pinned on union concessions and help from the state legislature. Neither is likely.
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