The Great American Pension Crisis is right around the corner

About a week ago I wrote that the potential for a state and municipal fiscal and public sector pension crisis is a defining issue for the next downturn here in the US. Global strategy and research company 13D joins me in worrying about it.
Underfunded pensions mean crisis
Here's what they write:
Fully-funded pensions are by their very design a mathematical impossibility —a topic we have discussed at length in these pages. In an effort to outrun their inevitable day of reckoning, these funds have assumed more risk, magnifying the likelihood of a massive unraveling. Most state pension funds now invest at least 40% to 50% of their assets in stocks. If you include private equity allocations, the overall exposure to equity investments is 70% to 80%. America’s largest public-pension fund, the...


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