It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
When New York State officials agreed to allow local governments to use an unusual borrowing plan to put off a portion of their pension obligations, fiscal watchdogs scoffed at the arrangement, calling it irresponsible and unwise.
And now, their fears are being realized: cities throughout the state, wealthy towns such as Southampton and East Hampton, counties like Nassau and Suffolk, and other public employers like the Westchester Medical Center and the New York Public Library are all managing their rising pension bills by borrowing from the very same $140 billion pension fund to which they owe money.
are all managing their rising pension bills by borrowing from the very same $140 billion pension fund to which they owe money.
To solve this problem of nothing but debt standing for pension obligations, they've come up with a solution to pay the pensions....by creating NEW debt with NEW interest to contend with so the OLD debt and OLD obligations can be dealt with. Is that all about correct?
So... What happens when this NEW debt becomes the OLD debt down the road and the doubling down on stupid this time requires a TRIPLING down on stupid then just to keep their collective heads above water??
Originally posted by Crakeur
reply to post by LittleBlackEagle
somehow, it's even more twisted than the ponzi that scam that social security has become. now, they aren't even using current contributions to cover the outflows, they're borrowing against future contributions. Let's say, for arguement sake, the economy goes to pot (I know a long shot) and inflation is rampant (again, another long shot) and current employees, feeling the squeeze, decide to contribute less to their pensions. where will the funds come to cover the debt?