We’ve frequently argued that public pension underfundings are perhaps the greatest threat to the long-term economic outlook of the United States, if not the globe. With aggregate underfunding levels of $5-$8 trillion, depending on what discount rate your local politicians decide to pull out of thin air, the forthcoming pension crisis will be too large for even the very generous American taxpayer to cover.
That said, and as if avoiding the next pension-induced global financial crisis weren’t hard enough, the San Francisco Board of Supervisors seems hell bent on accelerating the crisis by forcing their public pension board to completely ignore their fiduciary duty to retirees (and all taxpayers, frankly, as we’ll all be left holding the bag when these ponzi schemes implode) and immediately dump all “fossil fuel” investments irrespective of financial merit. You know, because restricting investing options is clearly in the best interest of retirees…even though we would venture to guess that most of them couldn’t care less where their money is invested as long as their benefits never get cut. Here’s more fromthe San Francisco Chronicle:
This post was published at Zero Hedge on Sep 12, 2017.
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