Skip to comments.Interest Rate Pressure Creating "Perfect Storm" of Corporate Pension Deficits
Posted on 10/06/2011 11:58:09 AM PDT by the invisib1e hand
This is a big story that you're not hearing much about. cites a forbidden source:
This is nearly a half-trillion dollars that the Federal government is on the hook for, which might not be showing up in deficit numbers. Another "perfect storm."
Just not sure how to post this. It’s news but can’t be posted until some other source picks it up.
The result seems obvious.
We have growing inflation looming.
Plan for it and get out of debt now!
Actually I am surprised it isn’t worse. At least the obligations are not all due at one time.
Actually, if inflation is coming then the best course is to buy as much real estate now while it is cheap and you can get a 30 year fixed mortgage at 4%. With enough inflation the stamp (what the heck is a stamp) might be more than the mortgage payment as happened in some South American countries.
The perfect storm is why the govt(i.e. - taxpayers) have to pick up for what should be totally handled by the private sector.
Are we communists already?
Many properties are being vacated. And banks don’t pay property taxes, until the properties sell. There may be a few, rare exceptions, but most of them wait for resale (which won’t happen for a very long time).
So there will be a bond collapse all the way down to local levels, but that will be triggered by the collapse of treasuries (inevitable).