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And You Have to Pay into Pensions?

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May 01, 2008 – Comments (3)

Buffet said it correct when he said that companies are inflating today's profits by underfunding pensions with an expectation of a rate of return of 8%.  A rate of 5% is far more realistic

Well, eeeeekkkkk, egads, omg, yikes...

These fools are issuing pension bonds at 5.88% and hoping to get an 8.5% return on investment. 

3 Comments – Post Your Own

#1) On May 01, 2008 at 9:29 PM, RVAspeculator (29.20) wrote:

Hopefully they bought a few days ago and sold at the close.  Pretty much anything they bought would have gotten them an 8.5% return  :)

 Seriously though I would not be suprised to see a lot of people requesting the payout on their pensions.  I know this is what I am doing when I leave my current job.

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#2) On May 01, 2008 at 9:42 PM, abitare (35.58) wrote:

dwot,

You missed the title:

`Dumbest Idea Ever' Used as Pensions Plug Deficits (Update2) 

plus the picture is great!

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#3) On May 02, 2008 at 12:10 AM, devoish (98.26) wrote:

They are being incredibly foolish to claim they can get a return of 8.5% when they can show they can easily close the entire gap by claiming they will get 12.5%

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