Page 904 - Pensions News Today

Boater we are talking about a surgery with nearly 1012% unemployment. the third-highest foreclosure rate in the country and now we learn that the accountants in san bernardino who have been cooking the books for 13 years, spreading out the losses. the city of san bernardino is so broke that i cannot make payroll after august 15, which means that police, firefighters, trash collectors and other city services would likely stop working. heres the reaction after last nights vote. listen. >> ive been...

>> another city in california is going down. and reorganization is bankruptcy. >> in all these years we have been here work for the city and enjoying city. now all of a sudden it comes to light after 16-20 years -- >> for two years we have been lied to. wow! megyn: that reaction from san bernardino, california which last night became the third city in that state to approve bankruptcy filings. one of the big issues is pensions. moodys saying there are $2 trillion in unfunded pension liabilities a...

Thats the point of the moodys report. at this point the gap has become $2 trillion. the economy. pension deficits are $2 trillion. if the question about that is how do we get to that point. it sounds like if you read this moodys report. they were doing funny math. who is doing the funny math? >> a 7% to 8% return. they will earn that and take that money and pay the pensions. they havent been earning close to that. megyn: who makes 8% in todays market? >> ill tell you who. they are calculating fo...

Back. ive explained to them here is what you have to do now to project your costs over the next several years to pay them back. its very difficult, a very difficult situation. ive been reelected three times. you have to be honest with the people and this is what the services cost. we have been burdened with a lot of legacy costs in scranton. we have to manage the city and the employees and make it work. martha: in so many cities across america the issue is the legacy costs, the pensions. we hear...

If he gets reelected in a year do you believe in 2014 he wont take those bush tax cuts and say forget, we are not going to reup them for a year? if he cares about middle class and cares about america, make the bush tax cuts permanent for everybody. megyn: michael reagan, thank you, sir. coming up, a terrifying 15 seconds at 30,000 feet. airline passengers say they thought when they are going to die. just exactly what happened that landed several of them in the hospital? also, one of the most dra...

Out and borrow more money. thats why what moodys is saying we are beating you to the punch. we are going to show people how much you owe and how you have no hope of getting there and well downgrade your credit rating. mood yims is sending the signal you have to make some serious cuts to the size of your government to the employees that you have and the pensions you have. megyn: if thats more layoffs for these cities, its more jobless people. and less money in the economy. >> it blows me away. th...

Vote the way they did. the reorganization will probably help. they have no, they have no other avenue. >> i lived here all my life. and to see that, weve, were down this road, it hurts. >> reporter: san bernardino needs to close a nearly $46 million budget gap. it is already stopped paying some vendors and may not be able to make payroll over the next three months, martha? martha: that is a tough situation but as that man says maybe the reorganization will start to help to weed things out. the m...

To do this. if there is some long-term thing like pensions, that is one thing. this guy wants to flail away and get 29% tax increase. megyn: he wanted to increase city taxes by 29% and he wanted to raise property taxes by 78%. and now he is like, they wouldnt let me. this is, i mean seems a little disingenuous dom? >> he is trying to hold a gun to the head of these guys. they cant work for minimum wage. the public employee unions are being held hostage here is turn about fair play. i say it is t...

Minimum wage. celine nashgs does he have a point? >> he does have a point but there is a political grandstand. doherty is in a fight with the city council. they have always had a toxic relationship. he always had a toxic relationship with unions in that city. he wants the tax hike. the city council doesnt want it. the president of the city council, january nest evans wants to be mayor, which is the position that doherty has. so --. megyn: internal politics there? >> yeah, absolutely. megyn: but ...

Home? or firing people. so the, the options are extraordinarily limited for all around. that is why it is a grim and sad sorry. martha: it is incredible to hear city like scranton has $5,000 left in their account according to the mayor what he said. he wanted to raise taxes by 29% in order to cover the short fall. where is the discussion changing pension agreements going forward or everybody under a certain age? >> reporter: right. martha: those kind of things that will solve the long-term probl...