Detroit Is Bankrupt - Judge Includes Pensions As Assets

[TheCountOfNowhere]

People need to remember that pensions are not the only type of financial promise that may not end up getting honoured.

The UK are in for a massive pension shock in 20 years time.

The boomers got great pensions, great job security and great houses.

The rest of us a paying for it.

I don't see the newly arrived romanians etc paying for ours.

The pension pyramid is not for me.

Edited December 4, 2013 by TheCountOfNowhere

[stormymonday_2011]

The UK are in for a massive pension shock in 20 years time.

The boomers got great pensions, great job security and great houses.

The rest of us a paying for it.

I don't see the newly arrived romanians etc paying for ours.

The pension pyramid is not for me.

Do you really think other sort of savings class are going to be immune from this type of resolution ?

It is highly unlikely that the bankruptcy of Detroit will be resolved simply by reneging on their pension obligations

The judge overseeing the process is almost certainly going to insist that the holders of the city's bonds take a massive haircut.

As already mentioned that appears to include some European banks.

Their depositors money may be as much at risk as Detroit city pensions and you can be sure that the Yanks will find it a lot more acceptable to burn European savers than US pensioners.

Edited December 4, 2013 by stormymonday_2011

[Roman Roady]

Very significant event IMPO.

Also strange that the UK announce the extension of the pension age today.

The unfunded obligations for the western economies mean that none of us will see these promises realised.

Also, the simultaneous IT "glitches" for two UK banks this week should also serve to remind us that our bank accounts are "promises" of payment in the future.

These will be considered as assets in the event of another bank bankruptcy.