In this week's Off the Cuff podcast, Chris and Mish discuss:
- Illinois' Staggeringly Underfunded Pensions
- To the tune of $40k per household
- Broken Promises In-Waiting
- Many other states are in the same bad shape
- The Pin Moves Closer To The Bubble
- Growth is vaporizing despite record stock prices
- Keep A Close Eye On Bond Yields
- Flashing warning signs that investors are getting nervous
Fresh off his appearance on CNBC with Rick Santelli, Mish does the math for us on just how abysmally under-funded the pensions in his home state of Illinois are. Once estimate puts the current shortfall at $40k per household. But, of course, that assumes 7% annual growth into the future. What if that growth doesn't materialize, as Mish doubts it will? And what if people start moving out of state to avoid the crushing taxes that will need to be levied to fund this hole?
The Illinois pension system is indeed a financial basket-case. But it is by no means unique. Many states face similar reckonings, as decades of over-promises are about to be broken.
by billphil1964