Fear! State Pension Funds Reported $1.4 Trillion Deficit In 2016 (State Plans Disclosed Assets Of Just $2.6 Trillion To Cover Total Pension Liabilities of $4 Trillion)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

It should be pretty simple. The state withholds funds from your paycheck and invests for your retirement. But do you really trust government to do this properly?

Liquidity moves markets!

Follow the money. Find the profits! 

So not only do they underwithhold, they have to borrow funds to cover the shortfall.

According to the Pew Charitable Trusts, only 4 states had funding levels of 90%. South Dakota, Tennessee, Wisconsin and New York. The worst funded states? Illinois and Kentucky for starters.


In terms of operating cash flow rations, New Jersey and Kentucky are the worst. And Kansas is the only one in positive territory!


What is really surprising is that The Fed has kept rates so low for so long resulting in an asset bubble. So even with this massive aid of The Fed, state funds are STILL underwater.


So, we will all be called on to bail out state pension funds at some point in the future.


Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.