Here’s Why All Pension Funds Are Doomed, Doomed, Doomed

Jon Alternative Media, Banking, Economy, Fiscal Policies, Government

There are limits on what the Fed can do when this bubble bursts, as it inevitably will, as surely as night follows day. It’s no secret that virtually every pension fund is dead man walking, doomed by central banks’ imposition of low yields on safe investments, i.e. Zero Interest Rate Policy (ZIRP). Given that both The Economist and The Wall Street Journal have covered the impossibility of pension funds achieving their expected returns, this reality cannot be a surprise to anyone in a leadership role. Many unhappy returns: Pension funds and endowments are too optimistic Public Pension Funds Roll Back Return Targets: Few managers count on returns of 8%-plus a year anymore; governments scramble to make up funding

This post was published at Charles Hugh Smith on THURSDAY, MAY 26, 2016.