Three Reasons Public Sector Workers Are Killing The Economy; Pittsburgh's Pension Liability Hits $1 Billion; Pittsburgh Is Bankrupt

With thanks to the Business Insider who says "pass it on" here are Three Reasons Public Sector Workers Are Killing The Economy.



Three Reasons

1. Public sector employees cost too much.
2. We can't fire them no matter how bad they are
3. They are a permanent lobby

Because public workers get money from taxpayers, everything it gains means less money for the rest of us!

Please play the video, it is short, entertaining, and educational.

Pittsburgh's Pension Liability Hits $1 Billion

Please consider Pittsburgh's pension liability hits $1 billion

Pittsburgh's multimillion-dollar pension liability is set to balloon to $1.04 billion today, when city officials must comply with a state requirement to report retirement obligations to police, firefighters and other city workers.

With $296 million on hand in February, the city has about 30 cents for every dollar required to cover pension promises to about 3,200 employees and thousands of pensioners.

Mayor Luke Ravenstahl wants to avoid a state takeover of the pension funds looming at year's end by depositing at least $200 million from a controversial plan to lease city parking garages and meters for 50 years to a private firm.

"They're going to have to be very liberal in their assumptions, if they think that $200 million is going to bring them to 50 percent," said James McAneny, director of the Pennsylvania Employee Retirement Commission. "They're going to have to assume really good earnings and that nobody is going to be able to get a pay raise."

"It's one of the worst pension funds I've heard of," said Edward Siedle, president of Florida-based Benchmark Financial Services, Inc.

"Eight percent is an extraordinarily high expected return. Most funds are in the sevens," he said. "If you fail to meet your investment return, your liabilities grow each year. It's like setting an unrealistic bar."

Pittsburgh is bankrupt in my estimation. There is no way it can meet those pension obligations thanks to corrupt politicians getting in bed with greedy unions. The only way out is bankruptcy, hoping to overturn ridiculous promises in court.

Sadly, Mayor Luke Ravenstahl has his head in the sand, hoping to postpone reality with sleight of hand magic. It won't work.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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