Posted on 03/25/2020 7:47:37 PM PDT by Jim Robinson
The market crash and the economic fallout from the coronavirus have led to nearly $1 trillion in investment losses for U.S. public pension funds, Moody's Investors Service said.
The credit rating agency said the funds are generally facing an average investment loss of about 21% in the fiscal year that ends June 30, based on a March 20 snapshot of market indexes.
The severity of the spreading COVID-19, the disease caused by the virus, and government-ordered shutdowns in various U.S. states have weighed heavily on Wall Street, with the Dow Jones Industrial Average erasing over three years of gains in one month.
“Without a dramatic bounceback of investment markets, 2020 pension investment losses will mark a significant turning point where the downside exposure of some state and local governments' credit quality to pension risk comes to fruition because of already heightened liabilities and lower capacity to defer costs,” Tom Aaron, a Moody's vice president, said in a statement.
(Excerpt) Read more at newsmax.com ...
Cloward-Piven in its full glory.
That’s a shame. Sucks retiring at full pay at 45 when there is no money to pay you.
Yeah, well, sorry about that.
Life is tough.
If you ain’t been Prepping, it’s time to start.
Said this from the beginning. Newsletters will go out, as when AOL cratered, stating higher contributions necessary.
And,as usual, none of those responsible will be jailed.
govt workers never suffer ever.....look at all the californians leaving their state for cheaper pastures ONLY after they’ve secured their obscene pensions...
Stuff gonna get real for a whole lot of people. Dems cut their own throats this time by killing the economy in yet another attempt to get Trump.
Fiscal problems become newsworthy whenever a Republican is President.
This presumes that the markets don’t rebound, the managers of
these funds cashed out at the dead bottom, or portions of both.
I doubt the losses will be as bad as they are saying.
One more attempt to milk a cow that’s already given five
gallons today.
They will just raise taxes or borrow the money to make up for it. Their bad investments are always responsibility of the tax payer.
I warned about this very thing weeks ago as well as the issue of margin calls.
I still have an idiot stalker that pops up and says there were no margin calls.
Hopefully, the ship gets righted soon.
Yep, if CALPERS/CALSTRS blows it and doesn’t have enough $$ to pay guaranteed/defined Calif. pensions then the general fund/taxpayers have to pick up the slack.
So let’s see here....the market skies pretty much for the entire time DJT was elected (3+ yrs) and hits a rough patch for 2 weeks during COVID 19 and now it end of the world time? What the hell happened with the previous 3 years increases?
So, it works then like Madison Savings and Loan.
The pension fund makes investments for political favors or cronyism, gets money under table to directors, money is sent to business that leak like a sieve while paying the owners. The loss fully absorbed by the tax payer. Great work if you can get it.
Debt policies are running out of room because of the nominal rate to the GDP.
I don’t think US treasuries becoming junk will be solved through taxes (Forget borrowing) while sustaining the current level of spending.
The market made back over 2,500 in a blink.
A lot of the loss is panic selling.
I bought TQQQs the other day and I DO NOT recommend them as the move at the 3x the rate of the nasdaq in BOTH WAYS.
That means you lose 3x as fast also.
I didn’t buy a lot.
And I bought at 36.
Could get clocked that’s why I didn’t put a whole lot into it.
Trade with your head, not over it :)
I always wanted to use that line :)
Not you, Doughty, you’re too level headed, as I already know.
Much more so than myself :)
Nancy Pelosi was heard to say, “I don’t care! I don’t care! I don’t care!!”
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