Pensions and AIG in common
All of a sudden it seems news of pensions is everywhere. Naked Capitalism has post about AIG, the ponzi scheme that it was, and then argues that pension funds are also a ponzi scheme, which I tend to agree with.
This I could not have said better:
I would throw all the crooks who ran AIG's Financial Products Unit in jail and prosecute them under the full extent of the law for criminal negligence that has caused irreparable damage to the U.S. and global economy.
And there is truth to this:
And just like AIG, when their financial solvency eventually reaches a breaking point, these pension funds are going to require billions, if not trillions, in bailout funds to allow them to meet their pension obligations.