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The First 10 City Pensions That Will Run Out Of Money
The Business Insider ^ | 10/27/10 | Gus Lubin

Posted on 12/27/2010 8:03:23 AM PST by FromLori

The first total municipal pension default happened last week: Prichard, Ala. ran out of money stopped mailing pension checks.

Hundreds of cities could be right behind. Projections by Robert Novy-Marx and Joshua Rauh [PDF] show the average city has $15,000 per household in unfunded pension liabilities. These massive liabilities are ignored by common government accounting (see chart).

Insolvency means benefit cuts or borrowing from the already-near-broke states.

Many of the 77 cities surveyed by Novy-Marx and Rauh are facing insolvency within the next decade. Other small cities like Prichard could go even sooner.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Government
KEYWORDS: economy; pensionfunds; progressives
#10 Fort Worth...Unfunded liability: $2 billion Unfunded liability per household: $7,212 Solvency horizon: 2023

#9 Detroit...Unfunded liability: $6.4 billion Unfunded liability per household: $18,643 Solvency horizon: 2023

#8 Baltimore...Unfunded liability: $3.7 billion Unfunded liability per household: $15,420 Solvency horizon: 2022

#7 New York City...Unfunded liability: $122.2 billion Unfunded liability per household: $38,886 Solvency horizon: 2021

#6 Jacksonville...Unfunded liability: $4 billion Unfunded liability per household: $12,994 Solvency horizon: 2020

#5 St. Paul...Unfunded liability: $1.4 billion Unfunded liability per household: $13,686 Solvency horizon: 2020

#4 Cincinnati...Unfunded liability: $2 billion Unfunded liability per household: $15,681 Solvency horizon: 2020

#3 Boston...Unfunded liability: $7.5 billion Unfunded liability per household: $30,901 Solvency horizon: 2019

#2 Chicago...Unfunded liability: $44.8 billion Unfunded liability per household: $41,966 Solvency horizon: 2019

#1 Philadelphia..Unfunded liability: $9 billion Unfunded liability per household: $16,690 Solvency horizon: 2015

1 posted on 12/27/2010 8:03:27 AM PST by FromLori
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To: FromLori

sfl


2 posted on 12/27/2010 8:05:11 AM PST by phockthis
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To: FromLori

The GOP House must stand firm against any attempted new federal bailout...


3 posted on 12/27/2010 8:08:10 AM PST by ken5050 (I don't need sex.....the government screws me every day..)
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To: FromLori

Top 25 Most Liberal Cities:

1 Detroit Michigan

2 Gary Indiana

3 Berkeley California

4 Washington, D.C. Dist. of Columbia

5 Oakland California

6 Inglewood California

7 Newark New Jersey

8 Cambridge Massachusetts

9 San Francisco California

10 Flint Michigan

11 Cleveland Ohio

12 Hartford Connecticut

13 Paterson New Jersey

14 Baltimore Maryland

15 New Haven Connecticut

16 Seattle Washington

17 Chicago Illinois

18 Philadelphia Pennsylvania

19 Birmingham Alabama

20 St. Louis Missouri

21 New York New York

22 Providence Rhode Island

23 Minneapolis Minnesota

24 Boston Massachusetts

25 Buffalo New York


4 posted on 12/27/2010 8:08:53 AM PST by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: phockthis

Wow, that’s a lot of Democrats scattering out from under the property taxes their elected politicians have obligated them to.


5 posted on 12/27/2010 8:09:57 AM PST by gusopol3
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To: FromLori
From the list I see a pattern of right-wing conservative run cities. How is that possible?

=;-)

6 posted on 12/27/2010 8:10:52 AM PST by Sgt_Schultze (A half-truth is a complete lie)
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To: Doogle

I don’t know if I would call Detroit most liberal. Ann Arbor and Kalamazoo both put Detroit to shame in the liberalism department.

Detroit has the most corrupt greedy leadership combined with an apathetic lazy population.


7 posted on 12/27/2010 8:11:55 AM PST by cripplecreek (Remember the River Raisin! (look it up))
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To: cripplecreek

I didn’t get that list from this site, but........

http://www.epodunk.com/top10/liberal/


8 posted on 12/27/2010 8:22:47 AM PST by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: FromLori

I,m sure the federal reserve is looking for loop holes that will allow them to produce a Q whatever ______ to give them some green inked paper.


9 posted on 12/27/2010 8:32:19 AM PST by org.whodat
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To: FromLori

This is a good indication of a government owned by bankers...

Governments 100 years ago either ran a balanced budget, sold government bonds or had a SMALL debt that eventually was repaid.

For the last 45 years we have literally mortgaged our liberty to the bankers. The founders were very blunt about the dangers of domestic and international bankers; I guess it took a few generations to forget and hide what the founders taught.


10 posted on 12/27/2010 8:33:21 AM PST by cougar_mccxxi
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To: Doogle

You ‘left’ out Santa Cruz CA. and Madison WI.


11 posted on 12/27/2010 8:33:27 AM PST by rahbert
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To: FromLori

Somehow it just seems perfect that Baraq’s Chicago leads the per capita debt list.


12 posted on 12/27/2010 8:36:34 AM PST by nascarnation
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To: org.whodat

Agree the Fed has become nothing but Marxist Enablers by monetizing the debt and with the new voting members it appears will we see more of the same.

http://www.economicpolicyjournal.com/2010/12/new-voting-members-of-fomc.html


13 posted on 12/27/2010 8:41:28 AM PST by FromLori (FromLori)
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To: FromLori
Of course these calculations assume more or less constant levels of employee compensation and a reasonable return on pension funds (i.e. no stock market collapse and default on government bonds) and that the government entities continue their contributions at at least historical levels without taxpayer revolt and that politicians leave all of the pension fund assets untouched.

Historically, in most other countries with similar economic circumstances, few of these events come to pass. Thus government pensions are typically among the first things wiped out by inflation/hyperinflation.

Or putting it another way, the current levels of government largesse are simply unsustainable, and government promises are frequently poorly kept.

14 posted on 12/27/2010 8:42:50 AM PST by Zakeet (Always trust in the five G's: God, Gold, Guns, Grub, and the Government screwing up)
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To: phockthis
#2 Chicago...Unfunded liability: $44.8 billion Unfunded liability per household: $41,966

Almost 42K per HOUSE. Amazing.

15 posted on 12/27/2010 8:43:01 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: cougar_mccxxi

Yes the Global Bankers not the small American Bankers they are dropping like flies while the large one’s that donated to obama,acorn have experienced no pain.

See this thread

A Ton Of Bailed-Out Banks Are On The Brink Of Collapse

http://www.freerepublic.com/focus/f-news/2647961/posts


16 posted on 12/27/2010 8:45:02 AM PST by FromLori (FromLori)
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To: phockthis
#2 Chicago...Unfunded liability: $44.8 billion Unfunded liability per household: $41,966 Solvency horizon: 2019

Considering that close to half of those' households' are on welfare or other forms of assistance that estimate is off by at least a century. Simple truth...Chicago is Bust!

17 posted on 12/27/2010 8:47:26 AM PST by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: FromLori

Wow, Fort Worth.


18 posted on 12/27/2010 8:50:12 AM PST by ViLaLuz (2 Chronicles 7:14)
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To: Lurker

If you figure half, or more of the households are personally insovent, bairly existing, in effect, the households that might, just might at the point of a gun, might be able to be raped to pay, so it’s more like $80K per household.

The poor, elderly, one income can not pay, no matter what. Many will flee. Think sweeping fire of debt from home to home.

Anyway, Detroit is the future.


19 posted on 12/27/2010 8:51:53 AM PST by Leisler (They always lie, and have for so much and for so long, that they no longer know what about.)
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To: ViLaLuz

I was surprised by St. Paul though I know it’s really liberal I had no idea it was that bad I would have expected Minneapolis to be worse.


20 posted on 12/27/2010 8:53:18 AM PST by FromLori (FromLori)
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To: FromLori
#10 Fort Worth...

#9 Detroit...

#8 Baltimore...

#7 New York City.

#6 Jacksonville...

#5 St. Paul..

#4 Cincinnati...

#3 Boston...

#2 Chicago...

#1 Philadelphia..

Government employees losing their fat bloated pensions?

This is long over due.

21 posted on 12/27/2010 8:53:24 AM PST by dragnet2 (Diversion and evasion are tools of deceit.)
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To: FromLori

Like California, these cities just continue with their established ways. They operate under the belief that Obama will make it all OK.


22 posted on 12/27/2010 8:57:00 AM PST by Baynative (Truth is treason in an empire of lies)
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To: org.whodat
I,m sure the federal reserve is looking for loop holes that will allow them to produce a Q whatever ______ to give them some green inked paper.

Well, we had "Build America Bonds" so I guess, besides renewing the BABs, we'll have "Build Cities Bonds" and the Fed will merrily buy both.

23 posted on 12/27/2010 9:17:53 AM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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What is this? A race to the bottom?


24 posted on 12/27/2010 9:18:06 AM PST by Milhous (Lev 19:18 Love your neighbor as yourself.)
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To: cripplecreek

Ann Arbor has the Greenie Weenie Peacenik Blame America First Liberals.

Detroit and Flint have the 1930’s Huey Long, Woodie Guthrie and Union Newsletter Economic Liberals.


25 posted on 12/27/2010 9:24:32 AM PST by Buckeye McFrog
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To: Baynative
"Like California, these cities just continue with their established ways. They operate under the belief that Obama will make it all OK."

Most liberals I know literally believe there is no end to the money in "the richest country in the world".

On the very rare occasion when the realization hits that the country is going broke, it's met with swift, strong denial and then quickly and/or conveniently forgotten. China fuels this denial...for however long they care to string us along with loans (bribes)...

26 posted on 12/27/2010 9:25:27 AM PST by Earthdweller (Harvard won the election again...so what's the problem.......? Embrace a ruler today.)
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To: Buckeye McFrog
Detroit and Flint have the 1930’s Huey Long, Woodie Guthrie and Union Newsletter Economic Liberals.

Good description. You won't find a lot of love for gay marriage in Detroit but you will find a lot of greedy self entitlement mentality.
27 posted on 12/27/2010 9:29:58 AM PST by cripplecreek (Remember the River Raisin! (look it up))
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To: Earthdweller
"Most liberals I know literally believe there is no end to the money in "the richest country in the world"."

You've pointed to another paradox of liberal mentality. While they think there is no end to the money that government can dole out, they also believe that capital is a zero sum commodity and everyone who becomes well off has done so by making someone else poor.

28 posted on 12/27/2010 9:35:07 AM PST by Baynative (Truth is treason in an empire of lies)
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To: FromLori

1. Politicians want to get elected and reelected.
2. Unions contribute to their campaigns and gurantee turnout.
3. Politicians negotiate sweetheart deals with the unions.
4. Politicians underfund pensions so they can buy goodies for their contituents and buy more votes.
5. Before the stinky hits the fan, the politicians have moved on and/or retired.
6. Retirees and the taxpayers get screwed.

The average workers nationwide do not receive exhorbitant pensions. The fatcat bureaucrats do.


29 posted on 12/27/2010 9:39:00 AM PST by SC_Pete
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To: SC_Pete

Banksters. The banksters own it all in the end.


30 posted on 12/27/2010 9:55:16 AM PST by Milhous (Lev 19:18 Love your neighbor as yourself.)
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To: Milhous

Agreed. Without the ability to spend money they don’t have, the scam collapses. At the local level, short term obligations are being financed with long term debt. That’s a prescription for disaster. Worse yet, at the national level, the international banking cartel is now setting US policy. Our We have lost our sovereignty to banksters: and that includes the CHICOMS.

However, no one held a gun to the heads of the corrupt politicians and their greedy constitutents to ignore sound money policy. When you borrow from the MOB, you get more than debt.


31 posted on 12/27/2010 10:06:05 AM PST by SC_Pete
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To: Leisler
Anyway, Detroit is the future.

And it was done purposelly.

32 posted on 12/27/2010 10:14:13 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Baynative
"....they also believe that....everyone who becomes well off has done so by making someone else poor."

From the perspective of the middle class...a capitalist talks you out of your dollars, while the government just takes your dollars without even a hello and gives it to their political cronies.

Both scenarios leave you just a little bit poorer. Only one gives you even a chance to keep your money without threat.

A middle class liberal (see "a fool and his money are soon departed") cannot detect this monumental distinction and it threatens his very freedom. This lack of insight is shrinking the middle class and making large numbers of life long, poorer, indoctrinated liberals out of average Americans.

Anyway...I no longer waste much time trying to figure out liberals. They have already screwed the country into the ground. Sadly, recovery may not happen in our lifetime....the socialist legislation just from this past year alone is incomprehensible and is so massive will never be erased and likely will barely be dented for many years to come. Anyone trying to make an honest living is likely a criminal according to our new "laws"....

33 posted on 12/27/2010 10:25:34 AM PST by Earthdweller (Harvard won the election again...so what's the problem.......? Embrace a ruler today.)
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To: Sgt_Schultze
From the list I see a pattern of right-wing conservative run cities. How is that possible?

I have lived in both the Dallas and Philly suburbs. Texas has limits on how much property taxes can rise. In Pennsylvania, the sky's the limit.

34 posted on 12/27/2010 11:04:17 AM PST by sportutegrl
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To: rahbert

Don’t forget the Union of Soviet Socialist Bolder (CO)


35 posted on 12/27/2010 11:33:39 AM PST by vette6387 (Enough Already!)
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To: Lurker
Yes. Our elites are physical know-nothings that have acquired their status and wealth by paper degrees, paper law school, various symbol manipulating skills, and base, low, age old human manipulating skills.

In a free society they would fail and take their dupes and followers down with them. In a socialized society, with each of us chained by the power of the state, they harness that for their own wealth, and transmit losses away from them( let no opportunity go to waste ) and to us.

By and large, any politician or government actor is a liar, and a thief unless long proved otherwise.

36 posted on 12/27/2010 1:29:54 PM PST by Leisler (They always lie, and have for so much and for so long, that they no longer know what about.)
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