Last month we warned you that CalSTRS (California teachers’ pension fund) was in a bad spot and they were hoping that nobody would notice.
Yesterday CalSTRS announced that investment losses have left the fund with a $42.6 billion dollar shortfall.
oops
Even more worrisome: the fund will be completely wiped out shortly after today’s young teachers enter retirement. To counteract that problem, the fund will need to start sucking in major contribution increases almost immediately.
Read the rest of “Teachers’ Pension Fund $42 Billion in the Hole”
According to your link the system will be in trouble in 2045. Umm ya on point. Have u considered working for the Reg? o ya the capitalist blowhards are bankrupt. Where are our heroes? Lets revivify Milty!
Wall St crooks should be forced to pay this money back. But no, Obama lets them get away with using our money to give themselves bonuses.
Hug a teacher!
Cancel the program.
ocYahoo, just admit that you have no idea how pension systems work. The system is in trouble now, and it needs larger contributions today in order to avoid disaster down the road.
Sunny, Obama wants to at least get our money back, the republicans appear to be opposed to this fee on large banks to recoup the money.
The Republican administration passed the bailout, without including anything on bonuses. Obama put some caps on, which is why a lot of those banks paid back the money quicker than projected. The caps may not have been low enought to please everyone, but Obama at least wanted to do something.
Everyone pension fund took a big hit, this one should be no surprise. And if benifits are to be protected contributions will have to be increased to a lot of funds, both public and private or payouts will have to be reduced
Thanks Travis. Now go back to the mailbox, extract yr unemployment check, and return to yr new career in unpaid blogging. I have to get to my 80 smacker an hour job. Ya travesty of a man, hdh.
Jim (No. 6) – blaming one party, the Republicans, when the Dem’s controlled the Congress then, shows you play favorites. Both parties, over a period of 20 years or more, are reponsible for the economic mess we are now in. There is plenty of blame to go around, and go around it should.
I sure wish the Democrats were as good at saying NO to Bush in 2007-8 as the GOP is at saying NO to everything right now.
Jim, this fee on the banks is really just a band aid. Obama needs to fix this mess by brining back Glass Steagall, the Depression era legislation that forced commercial and investment banks to separate. This separation prevents banks from passing off their bad debts to investors.
The system won’t be whole again until the structural problems in the economy are fixed, and from what I have seen, Obama has no intention of fixing them. He kept Bernanke, Geithner, Summers and others who helped create the mess. These men care about what’s best for Goldman Sachs, not what’s best for America.
Obama seems perfectly comfortable letting the states sink, especially this state. The federal government gave us 2.4 billion for a high speed bullet train, but the train will actually cost 40 billion to complete. They expect us to borrow the difference. We are already 20 billion+ in the hole and they expect us to borrow 38 billion?! Furthermore, Arnold wants to put a 40 billion dollar water bond on the November ballot.
They want us to be like some third world country in debt to the IMF.