Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

..Read More »

The Best of Jim Cook Archive

 

Condensed Articles

April 28, 2017

archive print

THE UNAVOIDABLE PENSION CRISIS

By Lance Roberts

(condensed)

There is a really big crisis coming. Think about it this way. After 8 years and a 230% stock market advance the pension funds of Dallas, Chicago, and Houston are in severe trouble. But it isn’t just these municipalities that are in trouble, but also most of the public and private pensions that still operate in the country today.

Currently, many pension funds, like the one in Houston, are scrambling to issue debt, raise taxes or increase contribution limits to fill some of the gaping holes of underfunded liabilities in their plans. The hope is such measures combined with an ongoing bull market, and increased participant contributions, will heal the plans in the future. This is not likely to be the case. This problem is not something born of the last “financial crisis,” but rather the culmination of 20-plus years of financial mismanagement.

If the numbers are right, the unfunded obligations of approximately $4-$5.6 trillion would have to be set aside today such that the principal and interest would cover the program’s shortfall between tax revenues and payouts over the next 75 years. Again, that ain’t gonna happen. Which means that when the next major bear market comes growling, the real crisis won’t be secluded to just subprime auto loans, student loans, and commercial real estate. The real crisis comes when there is a “run on pensions”… when “fear” prevails benefits will be lost entirely. It’s an unsolvable problem. It will happen. And it will devastate many Americans. It is just a function of time.