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U.S. states have a combined pension shortfall of $980B, Moody's calculates, or the equivalent of...

U.S. states have a combined pension shortfall of $980B, Moody's calculates, or the equivalent of 66% of their income on average, including money from federal block grants and aid. Nebraska has the smallest gap relative to revenue with a shortfall of 7%, while Illinois - not surprisingly - has the largest hole with 141%. Moody's intends to take account of the underfunded pension schemes when assigning credit ratings.
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Comments (6)
  • Leftfield
    , contributor
    Comments (3814) | Send Message
     
    "Moody's intends to take account of the underfunded pension schemes when assigning credit ratings."

     

    While they're at it, they need to take into account the underfunded schemes of Washington.

     

    By the way, isn't considering these underfunded obligations part of professional due diligence when rating creditworthiness anyway? No, this is just another example of how truth and accuracy is not part of the mandate of Moody's and S&P credit ratings for the politically connected, but rather a tool to enable the Enron and Madoff ponzi accounting that is the model of TBTF Wall Street and Western governments.
    27 Jun 2013, 04:02 AM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Um, we can just print money to fix that shortfall. That fixes every problem.
    27 Jun 2013, 06:18 AM Reply Like
  • Redleg44
    , contributor
    Comments (7) | Send Message
     
    Does this include the underfunding of the state's political subdivisions, cities, towns, counties?
    27 Jun 2013, 07:57 AM Reply Like
  • poclerk
    , contributor
    Comments (405) | Send Message
     
    Good point! Welcome to the Century of Broken Promises.
    27 Jun 2013, 09:36 AM Reply Like
  • th3decider
    , contributor
    Comments (325) | Send Message
     
    Most likely not. Municipal finances like that usually arent lumped in with the State govs. Though if anyone has an FT account they can click on the article and find out. I dont :/
    27 Jun 2013, 09:54 AM Reply Like
  • tomlos
    , contributor
    Comments (1126) | Send Message
     
    IL is a dump and liberal utopia.. I live here and know.
    27 Jun 2013, 08:14 AM Reply Like
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