Pension Benefit Guaranty Corporation Deficit Increases

www.calculatedriskblog.com...

"The Pension Benefit Guaranty Corporation (PBGC) is the federal agency that guarantees pensions for 44 million Americans. The PBGC deficit doubled over the last six months to $22 billion ... but this is only just the beginning as the agency's potential exposure to future losses increased sharply."

Imagine the social stability ramifications if pensions across a wide swath of retirees are curtailed or dropped all together.

Edit: Link added.

[edit on 14-11-2009 by leo123]

globaleconomicanalysis.blogspot.com...

Why both the FHA and the Pension Benefit Guaranty Corporation are going to have to be bailed out.

Watch the vid and note how *completely* full of # this guy is.

More from Mish's above link:

"The Passage Of Time

Please note that $3.9 billion of the deficit is due to "passage of time". You can't make this stuff up, it's too bizarre.

Also note that the deficit was $35 billion in March. Hmmm. Guess what happens if the stock market goes down again.

Finally note that a "$10.6 billion charge due to an unfavorable change in interest factors." Think 0% interest rates has anything to do with this?

Calculated Risk says "With companies moving away from defined benefit plans, there will be fewer companies paying for insurance in the future - and the 'long-term solution' will probably involve some sort of bailout."

Clearly Calculated Risk is not thinking technically, and neither am I. A huge bailout is coming and the next market decline will exacerbate the losses.

Mike "Mish" Shedlock"