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awake
12-27-2010, 10:21 AM
Robert Wenzel's Blog

The First 10 Major Cities That Will Run Out Of Pension Fund Money (http://www.economicpolicyjournal.com/2010/12/first-10-major-cities-that-will-run-out.html)


Projections (http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf) by Robert Novy-Marx and Joshua Rauh show the average city has $15,000 per household in unfunded pension liabilities. A lot of it is off-balance sheet, hidden from easy public view. Many, many cities are in trouble. Here are the top ten major cities that are in trouble and when they will run out of money:

#1 Philadelphia- Unfunded liability of $9 billion, $16,696 per household, only 4 years before the pension accounts are empty

#2 Chicago- Unfunded liability of $44.8 billion, $41.966 per household, money runs out in 7 years

#3 Boston- Unfunded liability of $7.5 billion, $30,901 per household, money runs out in 7 years

#4 Cincinnati- Unfunded liability of $2 billion, $15,681 per household, money runs out in 8 years

#5 St Paul- Unfunded liability of $1.4 billion, $13,686 per household, money runs out in 8 years

#6 Jacksonville- Unfunded liability of $4 billion, $12,944 per household, money runs out in 8 years

#7 New York City- Unfunded liability of $122 billion, $38,866 per household, money runs out in 9 years

#8 Baltimore- Unfunded liability of $3.7 billion, $15, 420 per household, money runs out in 10 years

#9 Detroit- Unfunded liability of $6.4 billion, $18,643 per household, money runs out in 11 years

#10 Fort Worth- Unfunded liability of $2 billion, $7,212 per household, money runs out in 11 years

ctiger2
12-27-2010, 11:37 AM
I'll wager the money runs out at least twice as fast as he predicts.

agitator
12-27-2010, 11:57 AM
I'll wager the money runs out at least twice as fast as he predicts.

I'd wager pension money.

AGRP
12-27-2010, 12:04 PM
They'll get a bailout from the feds or China.

SpiritOf1776_J4
12-27-2010, 12:07 PM
I don't have any problem not paying my share of a pension for a goverment employee.

FSP-Rebel
12-27-2010, 12:11 PM
They'll get a bailout from the feds or China.

China ain't gonna do it, they're done with this sort of thing. But, hopefully with Ron as the Fed watchdog, we can stop this altogether. Since their leaders blew all the pension money, I say just give them low level unemployment benefits instead of their lofty packages that we financed over time. Cutting them off completely would be ideal but I just don't think that will happen, despite the economic situation at the time.

AGRP
12-27-2010, 12:19 PM
China ain't gonna do it, they're done with this sort of thing. But, hopefully with Ron as the Fed watchdog, we can stop this altogether. Since their leaders blew all the pension money, I say just give them low level unemployment benefits instead of their lofty packages that we financed over time. Cutting them off completely would be ideal but I just don't think that will happen, despite the economic situation at the time.

I know that's what people would like to believe, but it's not going to happen. The last people standing will be federal/state employees. I'm a bit pessimistic on this subject.