Is Everything Bankrupt?
The government-chartered company that insures the pensions of one in seven Americans said Friday that its deficit this year nearly doubled to $22 billion.
That's an improvement over the Pension Benefit Guaranty Corp.'s midyear record deficit of $33.5 billion, which spiked as auto makers and other companies faltered and caused the insurance fund's liabilities to spike.
Yet experts and officials say the long-term picture is grim. They say that without major changes, such as higher insurance premiums and less risky investments, the fund eventually will require a taxpayer bailout.
"We could face much higher deficits in the future," PBGC acting director Vincent Snowbarger said in a statement. "We won't fail to meet our obligations to retirees, but ultimately we will need a long-term solution."
Hmmmm. Massive Loans Defaulting. Businesses Shutting Down...Tax Receipts Evaporating. Incomes Shrinking. Will there be many taxpayers left?????
And now States comtemplating Bankruptcy.....some even thinking of returning to territory status????
State Finance Directors Warn of More Trouble Ahead
"I looked as hard as I could at how states could declare bankruptcy," said Michael Genest, director of the California Department of Finance who is stepping down at the end of the year. "I literally looked at the federal constitution to see if there was a way for states to return to territory status."
Don't forget, the recession is over........and the Titanic couldn't sink.
For those of you that think that this is not as bad as The Great Depression......from an accounting and legal standpoint......this is soooooooo much worse, once the fraud is revealed.