You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #35: Pensions may need a taxpayer bailout [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Aug-25-04 10:50 AM
Response to Original message
35. Pensions may need a taxpayer bailout

A $350-billion pension shortfall among U.S. companies may force the federal agency that insures retirement plans to seek a taxpayer bailout similar to the one during the savings and loan crisis, according to the Cato Institute, a Washington-based policy research group.

The Pension Benefit Guaranty Corp. had a record deficit of $11.2 billion last year after taking over plans for 152 companies such as Bethlehem Steel Corp. and US Airways Group Inc. Without changes to funding and premium rules, the PBGC's deficit is likely to swell to $18 billion in the next 10 years and may reach more than $50 billion, said Richard Ippolito, who wrote the Cato study and is a former PBGC chief economist.

"If exposures create claims that reach catastrophic levels, taxpayers will be called upon to provide a bailout," Ippolito said in the study released Tuesday.

Stock price declines and low interest rates have eroded the value of pension plans. Groups such as the Pension Rights Center, a Washington-based workers' advocacy group, have dismissed the likelihood of a bailout, saying the PBGC is well funded over the long term.

The collapse of savings and loans in the 1980s and early 1990s cost taxpayers about $124 billion and the thrift industry another $29 billion, according to the Federal Deposit Insurance Corp.

Printer Friendly | Permalink |  | Top
  -STOCK MARKET WATCH, Wednesday 25 August ozymandius  Aug-25-04 06:16 AM   #0 
  - WrapUp: "LIES, DAMN LIES, AND THE LYING FOOLS WHO TELL THEM!"  ozymandius   Aug-25-04 06:26 AM   #1 
  - Two Great Depressions - One Lifetime - by Robert B. Gordon, Sc. D.  ozymandius   Aug-25-04 06:34 AM   #2 
  - Hmmmm, perhaps I should rethink that degree and start plowing the  54anickel   Aug-25-04 02:34 PM   #58 
  - Good morning Marketeers.  ozymandius   Aug-25-04 07:00 AM   #3 
  - Thanks Ozy! I didn't mean to hi-jack the thread with my ranting and  54anickel   Aug-25-04 07:53 AM   #4 
  - On the topic of "untruths", here's one from HHS  54anickel   Aug-25-04 08:07 AM   #5 
  - daily dollar watch  UpInArms   Aug-25-04 08:13 AM   #6 
  - Hmmm, Forex gang questioning the Fed BS?  54anickel   Aug-25-04 09:10 AM   #21 
  - Hey, where's the dollar goin' today anyway? The chart for today is  54anickel   Aug-25-04 09:38 AM   #29 
  - Greenspan says housing data clouded  UpInArms   Aug-25-04 08:16 AM   #7 
  - Pretty much in line with his testimony regarding bubbles isn't it? Nope,  54anickel   Aug-25-04 10:06 AM   #31 
  - "Luxury Home Builder" Toll Brothers Profits Soars 56 Percent.  KoKo01   Aug-25-04 11:03 AM   #37 
  - Aetna Confirms Layoff Plans  UpInArms   Aug-25-04 08:21 AM   #8 
  - Hedge funds don't need more regulation-Greenspan  UpInArms   Aug-25-04 08:24 AM   #9 
  - Ha-ha, poor Greenspin has bastardized the role of the central bank  54anickel   Aug-25-04 08:38 AM   #13 
     - did you notice where this decision was made?  UpInArms   Aug-25-04 08:45 AM   #15 
        - Why yes it IS! And do you happen to know the year in which that  54anickel   Aug-25-04 08:56 AM   #18 
           - here's the text from the original Executive Order #12631  UpInArms   Aug-25-04 09:14 AM   #23 
              - So in layman's terms what they basically decided was  54anickel   Aug-25-04 09:56 AM   #30 
  - UK news: End of 'cheap energy era' as gas prices increase 12%  UpInArms   Aug-25-04 08:26 AM   #10 
  - Citigroup nabs big Texas bank  UpInArms   Aug-25-04 08:29 AM   #11 
  - more info on "The Adam Corporation" aka TAC  UpInArms   Aug-25-04 08:43 AM   #14 
  - here's where Adam got the banks  UpInArms   Aug-25-04 08:51 AM   #17 
  - "A relatively small deal for Citigroup"  54anickel   Aug-25-04 09:04 AM   #19 
  - pre-opening blather  UpInArms   Aug-25-04 08:31 AM   #12 
  - "Bullish, but becoming overbought". Seems to be the mantra each  54anickel   Aug-25-04 08:48 AM   #16 
  - Toll Brothers profit jumps 56 percent  UpInArms   Aug-25-04 09:06 AM   #20 
  - Bank of America Exec to Get ($20.7 million) Severance Pay  UpInArms   Aug-25-04 09:10 AM   #22 
  - $20.700 Million Severance Pay? Oh Yeah....How many employees who  KoKo01   Aug-25-04 11:25 AM   #42 
  - Is that the splash of a rat abandoning ship? WTF, they'll pay his Fed tax  54anickel   Aug-25-04 12:56 PM   #49 
  - 10:15 EST numbers and blather  UpInArms   Aug-25-04 09:17 AM   #24 
  - Inflation beast is loose again  54anickel   Aug-25-04 09:18 AM   #25 
  - new home sales report  UpInArms   Aug-25-04 09:22 AM   #26 
  - Crude Oil Rebounds as U.S. Inventories Expected to Decline  54anickel   Aug-25-04 09:23 AM   #27 
  - Oil Isn't Only Constraint on the Economy  54anickel   Aug-25-04 09:29 AM   #28 
  - "A Primer on Government Economic Reports -- Things You've Probably  54anickel   Aug-25-04 10:20 AM   #32 
  - Kuwait Minister: Oil Price Being Driven Up (by speculators)  54anickel   Aug-25-04 10:27 AM   #33 
  - Skilled Labor in High Demand  54anickel   Aug-25-04 10:47 AM   #34 
  - Pensions may need a taxpayer bailout  54anickel   Aug-25-04 10:50 AM   #35 
  - Pension crisis grows as businesses weigh defaulting on plans  54anickel   Aug-25-04 11:00 AM   #36 
  - Sorry, Cato....No can do....we Americans have too much debt and we  KoKo01   Aug-25-04 11:18 AM   #40 
  - If we had a REAL free press...  loudsue   Aug-25-04 01:41 PM   #52 
     - Bwahahaha, Excellent point Loudsue!!! I'll admit I certainly overlooked  54anickel   Aug-25-04 01:51 PM   #53 
  - US consumer shows signs of flagging  54anickel   Aug-25-04 11:07 AM   #38 
  - 12:07 check out that vertical line right at the lunch hour  54anickel   Aug-25-04 11:10 AM   #39 
  - Dearth of new wells drilled could keep oil prices high  54anickel   Aug-25-04 11:22 AM   #41 
  - 1:09 EST numbers and blather (WHEE!)  UpInArms   Aug-25-04 12:11 PM   #43 
  - Yen intervention hasn't hampered Fed--Greenspan  UpInArms   Aug-25-04 12:38 PM   #44 
  - You dare to question! The great, magnificient wizard of Oz has SPOKEN!  54anickel   Aug-25-04 12:49 PM   #47 
  - Fed will be flexible, oil hits growth, Guynn says  UpInArms   Aug-25-04 12:40 PM   #45 
  - 1:31 EST numbers and (must read to believe) blather  UpInArms   Aug-25-04 12:43 PM   #46 
  - Maybe the blather authors read DU and have decided that  54anickel   Aug-25-04 12:51 PM   #48 
     - or maybe they've been struck dumb and what they see..  KoKo01   Aug-25-04 02:42 PM   #61 
  - Sleeping with The Debt - Mogambo  54anickel   Aug-25-04 01:25 PM   #50 
  - 2:25 Pump it up baby!!!! (outdated blather)  54anickel   Aug-25-04 01:27 PM   #51 
  - Gold Rises in New York on Terrorism Concerns After 2 Russian Planes Crash  54anickel   Aug-25-04 01:56 PM   #54 
  - Screaming from my soap box! (Generation gap?)  54anickel   Aug-25-04 02:13 PM   #55 
  - I don't know about this rant. I don't think it's a generational problem,  KoKo01   Aug-25-04 02:35 PM   #59 
     - Yes, I suppose it is more of a policy than generational issue, perhaps  54anickel   Aug-25-04 03:08 PM   #63 
        - It's "ugly and sad" ...agree. But not all the boomers were "flower  KoKo01   Aug-25-04 09:10 PM   #73 
  - 3:13 update. Any last hour surprises today?  54anickel   Aug-25-04 02:17 PM   #56 
  - U.S. Treasuries firmer, but auction disappoints  54anickel   Aug-25-04 02:20 PM   #57 
  - hmmm...."indirect bidders and customers of primary dealers...and....  KoKo01   Aug-25-04 02:38 PM   #60 
  - In search of a golden fleece  54anickel   Aug-25-04 02:57 PM   #62 
  - Closing numbers - a "Fantabulous rally"  54anickel   Aug-25-04 03:19 PM   #64 
  - A final splash of closing blather  54anickel   Aug-25-04 06:05 PM   #65 
  - Cartoon  KoKo01   Aug-25-04 06:13 PM   #66 
  - Here's a cartoon...  KoKo01   Aug-25-04 06:16 PM   #67 
     - Whaddaya up to there KoKo?  54anickel   Aug-25-04 06:53 PM   #68 
        - Sorry...after five test....for "tests" of Microsoft against "Netscape."  KoKo01   Aug-25-04 07:03 PM   #69 
           - Hi KoKo!  UpInArms   Aug-25-04 07:07 PM   #70 
           - Ahh, you always make me smile KoKo. No problem, sorry to have  54anickel   Aug-25-04 07:18 PM   #71 
              - ROFL...fugedaboutit? (did I get that right?) whatever..thanks to you  KoKo01   Aug-25-04 08:22 PM   #72 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC