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Reply #13


Response to Honeycombe8 (Reply #9)

Mon Nov 12, 2012, 08:56 PM

13. Lots of potential reasons

Big pensions were some of the duped investors in the financial crisis. They could have been one of the investors at the other end of one of those Goldman Sachs deals. Big investment losses inside the pension would require the company be liable for much bigger pension contributions to properly fund long term pension liability to employees.

Also, they could have made pension assumptions assuming a much higher return on assets than was realistic, then really taken a hit when the crash hit. Companies required pension contributions are based on employee factors like age, date of retirement, but also anticipated returns on assets.

There is a story here that likely has a lot more to do with bad management than workers demanding too much. I don't see how you get $1 billion in the hole on pension contributions overnight because of globalization issues (pension costs making them noncompetitive).

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Arrow 36 replies Author Time Post
Yo_Mama_Been_Loggin Nov 2012 OP
SoapBox Nov 2012 #1
cstanleytech Nov 2012 #17
PatrynXX Nov 2012 #29
bloomington-lib Nov 2012 #2
Monk06 Nov 2012 #11
TheBlackAdder Nov 2012 #3
Honeycombe8 Nov 2012 #4
jtuck004 Nov 2012 #7
Honeycombe8 Nov 2012 #8
wordpix Nov 2012 #19
Kolesar Nov 2012 #21
GitRDun Nov 2012 #5
Honeycombe8 Nov 2012 #9
LineLineLineReply Lots of potential reasons
GitRDun Nov 2012 #13
Yo_Mama_Been_Loggin Nov 2012 #12
GitRDun Nov 2012 #14
FreeBC Nov 2012 #28
SomeGuyInEagan Nov 2012 #33
humbled_opinion Nov 2012 #6
longship Nov 2012 #10
shanti Nov 2012 #15
SomeGuyInEagan Nov 2012 #16
DollarBillHines Nov 2012 #18
Teamster Jeff Nov 2012 #20
Viva_La_Revolution Nov 2012 #23
rdking647 Nov 2012 #26
DollarBillHines Nov 2012 #27
AlexSatan Nov 2012 #32
MrModerate Nov 2012 #22
jmowreader Nov 2012 #24
kelliekat44 Nov 2012 #31
rdking647 Nov 2012 #25
Sherman A1 Nov 2012 #30
Kablooie Nov 2012 #34
BanTheGOP Nov 2012 #35
glacierbay Nov 2012 #36
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