Just consider how these retirementfund losses are personally affecting people who had been counting on income from those vanished funds:
Colorado’s largest pension fund lost $11 billion, or 25% of its assets, affecting more than the 413,000 current and former government workers.
North Carolina’s state pension fund, which covers 820,000 state employees, lost 17% of its value in the past year.
In Jacksonville, Fla., a police union is threatening to sue the city if it doesn’t live up to its pledge to provide a step increase to the police pension - although city officials say the money just isn’t there anymore.
Alarming to many, the New York state pension fund hired Bank of America Corp. (BAC) and Parish Capital Management to manage $550 million as part of an expansion of its private equity portfolio.
Even more frightening, some companies found a loophole to increase a CEO’s pension by 10% to 40% - even as those very same companies slash pensions for their employees, The Wall Street Journal reported.
Pension Losses Will Have Widespread Fallout
The pensionfund losses will hit home on many levels.
For individuals, lost retirement funds are especially painful - especially for consumers who have watched the value of their home plummet, and for others who have seen one or more persons in the household lose their jobs.
The pensionfund declines could also end up crimping corporate earnings.
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Let me know if the Ontario Teacher's Pension fund has issues. Then I'll know pensions are in deep doo doo....
ReplyDeleteIf things are so bad, why isn't anything happening? People are still buying cars, homes and behaving as if not a thing is going on?
ReplyDeleteWell...126,000 who lost their jobs last month in Canada won't be doing any of those things. Once a million people in Canada lose their jobs this year you'll see a drastic shift in consumer behaviour. Patience grasshopper...
ReplyDelete#2 Anon, that is a good question. I personally am one of the people affected, I am self employed and my business has suffered a 50% slowdown since last August so I know at least in my industry things are really slowing down. And I talk with my fellow professionals and they are all on life support, so its real for at least a few economic sectors, I can vouch for that.
ReplyDeleteWhat I mean is, the behavior of the American people doesn't match up with the headlines People should be furious, doing something instead of allowing it to get worse. I read all the time of riots and protests against this historical thievery. however, the blind sheeple I personally speak to see nothing ahead but picnics and skipping along with their baskets into the sunset...all while they are the ones losing their jobs!
ReplyDeleteI truly believe that the people (especially the Americans) have done this to themselves out of sheer ignorance, ignorance on a GRAND scale beyond "mass brain dead." It is scary being one of the few thinking people left on this planet. WHERE DID EVERYBODY GO! (Anon #2)
I am not one of those sheeple. I do agree there are so many people with there head buried in the sand. I tell them of what is happening and what is to come, they laugh and say I am a nut case it is going to be better next year. Why does the Gov have concentration camps set up? Why does Obama talk and the markets go down. It seems like it is orchestrated to happen to bring the world down. I am starting to believe in this one world order. Why did the army bring in troops from the North American unit training in Iowa for urban assaults? Why in the media in America do we not hear about the civil unrest in Greece, Iceland ,Mexico and other European countries? I can only get that news of this stuff going on if I go to forieng news outlets.We just learned at my place of employment we may lose our 401k and pension, GONE. Keep what is in 410k but no more match, pension is a loss. This bailout money is too rob us so when it does end they take the money and run. God let us all be wrong. Unfortunately this time I don't think so!!!!
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