Moody's: State Pension Funds Are $980 Billion Short, Funded at 48 Cents on the Dollar (Via DealBook)

Whoa. Read the article at DealBook.

Moody’s Investors Service, dissatisfied with the way states measure what they owe their retirees, released its own numbers on Thursday, showing that the 50 states have, in aggregate, just 48 cents for every dollar of pensions they have promised.

That is much less than the 74 cents on the dollar that the states now report, suggesting the states are short by some $980 billion, with many local governments, like school districts, on the hook for additional billions that they have not disclosed at all.

Comments

  1. Can you say sick?......basic accounting 101.....you can't spend more than you have.....and the sick amounts promised to teachers, cops etc is BEYOND sick. When the doo-doo hits the fan, and the choice becomes tax the over-burdened tax payers even more?.... bankruptcy?.....borrow money from the state?.....borrow money from the Feds? (there's a joke)....NO PROBLEM!.....just print MORE Monoploy money......get your crash helmet and flack jacket ready......

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  2. Posting a vid next that says privatizing assets is the easiest solution.

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