The Pension Fund Crisis – It is beginning to boil!

The Hutch Report

Reading the news is tough. Most of it is bad, yet we tend to want more of it. For some reason humans are more drawn towards bad news than good news. There is a school of thought in psychology that says we do more to avoid pain than we do to gain pleasure. Could this be the reason why we need to know about all the bad stuff?  Is it merely a defense mechanism to protect ourselves?

At the same time we can ask ourselves if we have become so desensitised by bad news that it doesn’t impact us emotionally anymore. If true, it puts us in a perilous position. This psychological state prevents us from reacting to danger and you can bet that every once in a while a situation does arise that we should be paying attention to. Something that could provoke us to jump into action and protect ourselves, instead of sitting in a pot of boiling hot water like a frog, not realising what is happening, until it is too late. With that, I present you with the following pot of boiling hot water:

Public pensions: America’s Greece? (The Economist, Dec 17th 2014)

States face shaky financial futures; pensions at risk (USA Today, July 6, 2015)

The U.S. is facing a $1 trillion pension shortfall (CNN Money, July 14, 2015)

Connecticut, America’s Richest State, Has a Huge Pension Problem (WSJ, Oct. 5, 2015)

The US government has a $20.4 trillion retirement problem (Business Insider, Apr. 6, 2016)

One of the nation’s largest pension funds could soon cut benefits for retirees (The Washington Post, April 20, 2016)

The US public pensions crisis ‘is really hard to fix’ (FT, May 1, 2016)

Kentucky, home to the worst-funded pension plan in the US (FT, June 10, 2016)

Are State And Local Government Pensions Underfunded By $5 Trillion? (Forbes, JUL 1, 2016)

California’s Pension Funding Crisis Just Got Worse (Forbes, Jul 19, 2016)

Covering Up the Pension Crisis (Wall Street Journal, Aug. 25, 2016)

States Face a $1 Trillion Pension Problem: Here Are the Worst 10 (The Fiscal Times, Aug. 29, 2016)

The pension gap (LA Times, SEPT. 18, 2016)

Pension Funds Face Day of Reckoning as Investment Returns Lag (News Max, 21 Sep 2016)

Will Looming State And Local Government Pension Crisis Bankrupt The U.S.? (Investor’s Business Daily, 10/14/2016)

US state public pension unfunded liabilities to hit $1.75 trillion: Moody’s (CNBC, 7 Oct 2016)

Pension crisis: 50% of States can’t cover their annual pension costs (Value Walk, October 10, 2016)

Pension crisis: Fully funded ones a rarity (Fox News, October 25, 2016)

New Jersey Tops Illinois as State With Worst-Off Pension System (Bloomberg, November 2, 2016)

The State Level Pension Crisis: Pennsylvania (The American Spectator, November 10, 2016)

Era of Low Interest Rates Hammers Millions of Pensions Around World (Wall Street Journal, Nov. 13, 2016)

US Pension Crisis: This is How Families Get Squeezed to Bail Out Pension Funds in Chicago (Wolf Street Nov 17, 2016)

South Carolina’s looming pension crisis (The Post and Courrier, Dec 3, 2016)

A Dallas public pension fund suffers a run (The Economist, Dec 8th 2016)

The Looming Debt Crisis: A State & Local Perspective (Joint Economic Committee, Dec 08 2016)

American Pension Crisis: How We Got Here (Forbes, DEC 9, 2016 @ 08:41 AM)

It is starting to get damned hot in here so now is your chance to jump out or risk becoming a side dish with butter, garlic and parsley poured all over you, AND no retirement savings to show for it.