Wednesday, March 1, 2017

Bankrupting of US Pension Funds Has Begun #PensisCrisis

News
Like many union shops in the private sector, the teamsters Local 707 was a victim of bad timing and industry deregulation. The New York State Teamsters pension fund and the Central States Pension Fund are also teetering on the brink of insolvency.

Pensions across America, quickly entering crisis mode, lost money in the 2007-2009 stock market crash. Poor decision making and horrible timing sold 'risky' stocks at the bottom for the 'safety' of US government bonds. In other words, most pension funds needing 8% or higher returns to survive (payout to retirees) shifted to an asset yielding less than 3% and primed for a secular change of trend from falling to rising interest rates. This foolish decision will bankruptcy an increasing number of private and public pension funds from 2017 to 2020.

Headline: Drained pension fund has retired New York union workers pinching pennies to survive, as doom looms for reserves across U.S.

In the backseat of his beat-up car, Tim Chmil stashes what he refers to as his new retirement fund — bags and bags of recyclable bottles and cans.

Every time he spots a bottle on the street, he bends down to pick it up.

“Even if it’s just 5 cents, it’s money, and I need it,” the 71-year-old said.

It’s not the way the ex-trucker — a member of Teamsters Local 707 — expected to fund his senior years.


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