First of all, I want to thank Alexy, for his amazing contributions onhelping us understand pensions a little better.Pensions are very complicated to account for and comprehend. They arenot simply retirement accounts setup like an IRA or a 401K, in whichthe investor/employee allocates a portion of his/her money to investin a broad array of investment classes, such as stocks (foreign and/ordomestic), bonds (high-yield, government, international, corporate,etc.), and cash. Over the course of several decades of employment andcontributions, the investor/employee retires, and he/she lives on theinvestments and capital gains. THIS IS SO SIMPLE TO UNDERSTAND, andthere is nothing abstract about this concept at all. Moreover, thisscheme cannot ever be bankrupt, since no liability is incurred.,On the other hand, pensions are different: Today's wage-earners payfor today's retirees. Therefore, demographic pressures such as agingof a population, which is occurring in Western countries, can putgreat strains on pension schemes such as Social Security since feweremployees' contributions are funding their pensions. Moreover, thissetup has the ability to become insolvent.From what I understand, one benefit of pensions as opposed to aretirement savings system is that: " a government-run 401(k) wouldhave [meant that employees approaching retirement in the near futurewould see] next to no benefits. So US Government created a socialinsurance program that provides a rolling income shift betweengenerations of workers."I believe, based on this assertion, that pensions seem to allow agenerational income shift. What problem does this solve? From myvantage point, this creates so much disadvantages and complexities inthe system.I took a finance course regarding pension and health benefits ofAmerican employees at some of the most recognizable names inindustry. Because their pension obligations were so high, that thisactually created a huge liability which made the company have aNEGATIVE...

Nope, there are just some variations on how they operate.Some of them are just that. In fact many of them are just that.Yes it can, most obviously when it invests in some operation thatbecomes worthless. That does happen with some company pensionschemes that invest in that company. Happened with Enron etc.Thats not what bankruptcy is about.Plenty of them arent.That isnt how all pension schemes work, most obviously withdefined benefit schemes so common with govt employees.Yes, but thats easy to handle just by increasing the contribution rate required.Nope, because the detail can always be varied,most obviously with the contribution rate required.Its not an assertion, its a fact.Yes, there is certainly an effect like that, particularly as the scheme starts.It solves the problem with those who are destituteor dont have enough to live on in retirement.Its only a short term effect as the scheme starts up.Yes, and thats why there has been a move to what you call savings schemes.And you dont...

Some terminal fuckwit claiming to beBill Reid wrote just the puerile shit that any2 year old could leave for dead, as always.

So why are pensions to current retirees funded by current employees?

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Bill Reid 16 years ago

Almost forgot to keep the "OddPot" in his infinite loop...

Oh, and actually importantly, this refusal to see the "economy" as it really is is what prevents "investors" from making first-order forecasts of the financial markets. While I guess it is just harmless crank behavior for somebody like "Cod Mead" to spew out endless self-contradictory non-sequiturs about the "capitalism" as it is currently "practiced", for somebody who has any "skin in the game", it is a financially fatal self-indulgence in comforting stupidity...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

Do you always remember to pull up your pants after you are done in the bathroom? It actually doesn't matter because your behavior here is the Usenet senility equivalent...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

Rod, Rod, RODDY, the Rodster, the RODMAN, Rodabambamwaloobam, makin' copies, the Rodinator...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

Ever see a really dumb dog chase its tail? Even the dumbest of dogs eventually gets tired and falls asleep...now the question is: just how dumb a dog is "Odd Creed"?

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

See, this is what I'm talking about when I refer to "human thermodynamics". Think about it: for "Nod Heed" to post the above, many humans had to do many things. Humans had to design computers, build them, design and build computer networks, design and build the client/server software and the underlying operating systems, maintain and monitor the servers which required even more humans to provide electricity and design and build the buildings housing the servers, and all of THOSE people required food, shelter, transportation, EDUCATION, health care, etc., requiring even more humans to diligently toil at those tasks.

All of those people have to work so that the angry senile useless stupid old geriatric "God Peed" can make hundreds of worthless idiotic posts from his rest home, and in return, HE PROVIDES ABSOLUTELY NO VALUE TO THE "ECONOMY" AT ALL.

Now, multiply that by HUNDREDS OF MILLIONS of "retirees" around the world, and a person of average intelligence should be able to spot the "human thermodynamic" disequilibrium, which will of course be reflected in the monetized "economy", primarily as sky-rocketing "debt"...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

A thought so nice he posted it twice...IN THE SAME FRIGGIN' DAY, DAY AFTER DAY AFTER DAY AFTER DAY, AD RETARDUM!!!

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

OK, the first 200 times this was kind of funny, I didn't take it personally because "Bod Fleaed" is obviously such a fun kidder, but now I'm beginning to get a little peeved...another 300 of these, I'll be PISSED (well, a little)...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

Remember the Paul Simon song "Still Crazy After All These Years"? Well, you, "sir", and "STILL STUPID AFTER ALL THESE POSTS!!!"

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

It's like the friggin' oil spill, but twice as stinky...

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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Bill Reid 16 years ago

NO!!! THAT'S JUST NOT TRUE!!! TAKE IT BACK, YOU BIG MEANIE!!!

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Rod Speed 16 years ago

Some terminal f****it claiming to be Bill Reid wrote just the puerile s*it that any

2 year old could leave for dead, as always.

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So why are pensions to current retirees funded by current employees?

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