that he ev their boss is a politician when the bill for retirees medical bill comes soon. they make so many promises to government workers as a result cities and some states are trillions of dollars in the red. where will tomorrow s politicians get the money to pay them or pay what they promise they will raise your taxes and they will probably skip workers. sorry no more money to pay for yours. you have to pay your own retirement or healthcare. steve the manhattan institute points out two have made smart changes to prevent the pension bomb from going off. one is gary herbert. what did you do in utah? we tried to think long-term in utah. it s not just short term. it is long-term for a lot of
this guy is saying we are talking $2 trillion just in the pensions alone. reporter: it s been a big, big story. we followed the money almost nightly. we had a graph i can about a pension bomb, a bomb overhanging the economy ready to explode. $2 trillion. we heard estimates up to $3 trillion. the piece you are referring to, meredith whitney said there could be between 50-100 high 4 profile municipal defaults due to pension obligations going forward, towns, municipalities, and states owe employees. mr. kramer used to work for or continues to work for the democratic party, also oversees some investment in new jersey. he says they may have to sell assets, sell a school, sell a
he has signed a federal executive order. eric: i will let you get to it? unicon destruction workers privilege pass. eric: here is the issue, we have state, local, municipalities a pension bomb ready to explode on them, some say up to $3 trillion if they don t renegotiate union mentions going forward, those contracts they there are going to be bankruptcies across the country. our local, municipal governments is not about the fact that there are pension issues, it s the fact that local governments governments have got to find way to share services and consolidate. that s the issue. pensions have the unions have become a privileged class in this society. it s the rise of the public sector millionaire. kids working eric: let her finish. barack obama sign executive order when i was trying to make my point earlier but rudely cut off that gives unions the ability to cut construction jobs over private construction companies. let s see now, 15% of the construction workforc
on card check provision. he has signed a federal executive order. eric: i will let you get to it? unicon destruction workers privilege pass. eric: here is the issue, we have state, local, municipalities a pension bomb ready to explode on them, some say up to $3 trillion if they don t renegotiate union mentions going forward, those contracts they there are going to be bankruptcies across the country. our local, municipal governments is not about the fact that there are pension issues, it s the fact that local governments governments have got to find way to share services and consolidate. that s the issue. pensions have the unions have become a privileged class in this society. it s the rise of the public sector millionaire. kids working eric: let her finish. barack obama sign executive order when i was trying to make my point earlier but rudely cut off that gives unions the ability to cut construction jobs over private construction companies. let s see now, 15% of
of money, they keep printing it. that is the problem and keep printing money, turning it over to the states and going to china and say, by the way, we printed all of the money, can you back that for us arthel: that doesn t sound like a solution to me, eric. you are the money guy. it is a double-edged sword and you throw the money to the states and bail them out and they don t learn the lesson and keep spending and, 2, prices of things go up, like gasoline, $3.03 a gallon now on a national average, prices of things are going up, and bread will go up, wheat prices are going up, everything is going up. arthel: before we go, what is the end game, quickly? i keep going to chris christie, states have to do what he s doing and he s renegotiating the pensions and says to the teachers, if you don t want to renegotiate i have the alternative you are fired and are firing teachers and cops and unfortunately you don t want to hear that but that is the only way to defuse the pension