Page 835 - Pensions News Today

Those, theres no doubt about it, you do have some cities and municipalities that are in very, very bad shape, not a big optimist about the economy, but it is better today than it had been. the other side of the equation, these financial markets are coming back. >> the stock market is better, so these pension funds are going to have better returns so the balance sheet wont look as bad? >> they took a very bad hit like everyone else when the market plunged in 2008-2009. it doesnt mean theyre out o...

Course of several years. the local towns and municipal cities are being cut off from funding by both the federal government and the states. everybodys under fiscal during rest. the local municipalities have to fend for themselves. states have run deficits in more numbers in the last decade. the one area in the constitution where state and localities can cut from the budget is all of the things we count on for public service. all of those as a taxpayer adds to the value of your neighborhood and y...

It, you do have some cities and municipalities that are in very, very bad shape, not a big optimist about the economy, but it is better today than it had been. the other side of the equation, these financial markets are coming back. >> the stock market is better, so these pension funds are going to have better returns so the balance sheet wont look as bad? >> they took a very bad hit like everyone else when the market plunged in 2008-2009. it doesnt mean theyre out of the woods, you still have a...

The way i see it, and the way i saw it back in 2010, not that it would happen all at once, but that it would happen over the course of several years. the local towns and municipalities are being cut off from funding by both the federal government and the states. everybodys under fiscal duress. the local municipalities have to fend for themselves. states have run deficits in more numbers in the last decade. the one area in the constitution where state and localities can cut from the budget is all...

They need help. they have a lot of influence among democrats. do they deserve a bailout? >> absolutely not. not any more than california deserves a bailout or any other municipality or state that got into trouble because they took on too much debt which is basically what the problem is. $18 billion in debt. some portion of that is pensions, but to not even a majority. >> paul: what about the argument, detroit is victim of the economy. auto industry had a terrible time for a few years there. that...

Pensions. social security. pensions. government that you cannot afford. >> theyve known for 15 or 20 years this day was going to arrive. unions wouldnt renegotiate contracts. >> this is the most predictable problem if the world for detroit. >> you look at detroit and see how bad the axis there is. >> a lesson for not just unions but all-american cities. dont overpromise and overspend. >> dont you just feel the love for american workers? dont you just love the feel for community? dont you just ge...

Needs. in a city that bankrupt, we need $450 to $600 million and guarantee the bonds after downtown arena and not guarantee the pensions -- >> gosh, i havent heard any of the conservatives talk about that, bob king. i havent heard conservatives talk about that investment. what about it, bob. >> it is outrageous. what reverend anthony said is right. we need people to come and reinvest in detroit. the auto industry was tremendously successful. it was all coming together. thats what has to happen. ...

Can you put this down on a picasso? >> right. >> it will take a lot more than stephen colberts donation to get the city out of the hole. city has $18 billion in debt. that is $27,000 per resident. hard to say and hard to imagine. now as detroits bankruptcy was announced, senate republicans did propose some measures. they want to bar the federal government from adding any default municipality to any federal aid. in michigan republican governor rick snyder says there is no money to help detroit pa...

When did americans give up on americans? we havent and when went. reverend jesse jackson joins us up next. >> there was pension and benefits. >> lavish pensions. >> lavish pensions. >> yes, lavish pensions. on average $19,000 a year, which detroit now says they will pay 10 cents on the dollar. but retirees, if you budget right, you can afford everything you need in detroit. food, rent, a cue ball and sock to fight off hungry raccoons. when we made our commitment to the gulf, bp had two big goals...

From "the detroit free press," who we just saw in that stephen colbert report. what is your reaction to that we can somehow understand the crisis of lavish spending on pensions? >> we really globalize capital without globalizing workers rights so most content under the hood of the cars, is made from out of the country. so you bring in cheaper made. so if you globe ylize workers rights, and go a step further, and bailout gm, market for buick is china, so globalizationgloba there is no reinvestmen...