Posts Tagged ‘Pension Time-Bomb’

How The Public Pension Funds Avoid The Truth

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How The Public Pension Funds Avoid The Truth

Courtesy of Tom Lindmark of BUT THEN WHAT

There’s been much discussion, in fact so much as to cause overload, about the pension time bomb among monkeys, governmentstate and local governments that I hate to add to it. Nevertheless, I would like to direct you to a short and easy to read editorial in the WSJ today.

The point of the article is that the states continue to cook the books when it comes to pension accounting and a fair representation of the liability to which their taxpayers are subject. It illustrates just how far some states are going to pull the wool over everyone’s eyes:

Public employee pension plans are plagued by overgenerous benefits, chronic underfunding, and now trillion dollar stock-market losses. Based on their preferred accounting methods — which discount future liabilities based on high but uncertain returns projected for investments — these plans are underfunded nationally by around $310 billion.

The numbers are worse using market valuation methods (the methods private-sector plans must use), which discount benefit liabilities at lower interest rates to reflect the chance that the expected returns won’t be realized. Using that method, University of Chicago economists Robert Novy-Marx and Joshua Rauh calculate that, even prior to the market collapse, public pensions were actually short by nearly $2 trillion. That’s nearly $87,000 per plan participant. With employee benefits guaranteed by law and sometimes even by state constitutions, it’s likely these gargantuan shortfalls will have to be borne by unsuspecting taxpayers.

Some public pension administrators have a strategy, though: Keep taxpayers unsuspecting. The Montana Public Employees’ Retirement Board and the Montana Teachers’ Retirement System declare in a recent solicitation for actuarial services that “If the Primary Actuary or the Actuarial Firm supports [market valuation] for public pension plans, their proposal may be disqualified from further consideration.”

Scott Miller, legal counsel of the Montana Public Employees Board, was more straightforward: “The point is we aren’t interested in bringing in an actuary to pressure the board to adopt market value of liabilities theory.”

At least they aren’t shy about what they’re up to. I guess the rationalization is that so long as no one knows about a problem there


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Snakes could be the original source of the new coronavirus outbreak in China

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Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Zero Hedge

2019 Is 5th Consecutive Year With No Operating Profit Growth

Courtesy of ZeroHedge View original post here.

Submitted by Joe Carson, former Chief Economist & Director of Global Economic Research for Alliance Bernstein

2019 operating profits will show no growth for the 5th consecutive year. That would mark the longest stretch of no earnings growth since the late 1990s. Prospects for 2020-profit growth look slim as well given consensus GDP growth estimates of around 2%, slow global growth and rising costs pressure from labor.

Operating Profits

Q4 GDP and the full year 2019 operating profit numbers will not be released until March, but one...



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Kimble Charting Solutions

Bull Case For Stocks, Testing Critical Breakout Level, Says The Inspector!

Courtesy of Chris Kimble

Some price points lend themselves to potential turning points. Is the S&P at one of those price points? The inspector suggests it is!

This chart looks at the S&P 500 over the past couple of years. Fibonacci was applied to the 2018 highs and 2018 lows.

The rally off the December 2018 lows, has the S&P testing its 161% extension level at (1).

While at this extension level, momentum is the 2nd highest in the past 5-years.

The Fibonacci extension level becomes a price point where some stock market bulls need/want to see...



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Insider Scoop

11 Communication Services Stocks Moving In Thursday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Pareteum, Inc. (NASDAQ: TEUM) stock moved upwards by 4.5% to $0.87 during Thursday's pre-market session.
  • Comcast, Inc. (NASDAQ: CMCSA) shares rose 2.0% to $48.40. The most recent rating by Wells Fargo, on January 16, is at Overweight, with a price target of $51.00.
  • Vodafone Group, Inc. (NASDAQ: VOD) shares moved upwards by 1.4% to $20.22.
Losers
  • Genius Brands Intl, Inc. ...


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The Technical Traders

TRADING STRATEGIES FOR GDXJ, SPY, BONDS, AND NATURAL GAS

Courtesy of Technical Traders

Chris Vermeulen joins me today to shares his trading strategy for 4 different markets. While most of these markets are not correlated he has reasons for why he is long in each. Pick and choose where you want to deploy your capital.

Get Chris’ Trade Signals Today – Click Here

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Monday, 16 September 2019, 05:22:48 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This chart says SP500 should go back to 2016 levels (overshoot will occur of course)



Date Found: Tuesday, 17 September 2019, 01:53:30 AM

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Comment: This would be HUGE...got gold!


...

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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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