Dow Live Report

Dow Live Report Just as we may be gaining strength more clouds gather on the horizon. Here´s a snippet from Market Watch today:

“A train wreck waiting to happen. That’s the only way to describe the mess that state pension systems are in right now, according to a report published today by the Pew Center on the States. According to Pew, there’s a $1 trillion gap between the $3.35 trillion in pension, health care and other retirement benefits states promised their current and retired workers as of fiscal year 2008 and the $2.35 trillion they have on hand to pay them.

What’s worse, the gap may be even higher given that the study was conducted prior to the market collapsing in 2008 and given the way most states allow for smoothing of investment gains and losses over time…”

Undeniably, the demographic profile of the national population becomes more senior for each year. The trend is recurrent in most western and developing regions and certainly also true for Asia. Herein lies the next economic challenge:

• Should the state be a participant in financing the survival of the retired population?
• How will the state finance the support of the aging retirees?
• Should the retirement age be lowered to make more room on the employment scene?

Related posts:

1. BAC 45 billion Dollar check fails to calm state
2. Bank executives are paying back TARP funds
3. Do or die for Wall Street this week

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