Page 2 - Xpension Manager News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Managers in general and the projected revenues at pensions period that are then harvested by politicians in order for them to give tax cuts and all the other things and address what i view as a fairly screwed up relationship between the political leaders, the pension managers and the wall street banks. are your up for that? >> dylan, i'm very much up for that. you're right. >> so let's look at that triangle then which is a politician that wants to cut taxes and giveaway benefits. a pension manager that wants to live up to that expectation. and becomes what they call on wall street a yield hog,...

Guarantee corporation which would take these liabilities is in the-- in trouble to the tune of 165 billion dollars. >> moody's estimates that's the degrees to which there's underfunded liabilities in these plans. >> yeah, and a big part of the problem which kim alluded to is what economists call moral hazard. which is that, you know, the pensions, the pension manager, the union pension manager, has an incentive, knowing in the back of their minds that they can dump these liabilities on the pension benefit guarantee corporation, on the taxpayer. >> paul: on the government, yes. >> to front load...

Guarantee corporation which would take these liabilities is in the-- in trouble to the tune of 165 billion dollars. >> moody's estimates that's the degrees to which there's underfunded liabilities in these plans. >> yeah, and a big part of the problem which kim alluded to is what economists call moral hazard. which is that, you know, the pensions, the pension manager, the union pension manager, has an incentive, knowing in the back of their minds that they can dump these liabilities on the pension benefit guarantee corporation, on the taxpayer. >> paul: on the government, yes. >> to front load...

Banks. that is to say, the parts that do drerivatives would have to b not be part of the banks, if the banks have access to the federal reserve window. say they're worried about that because it's disruption, overkill, it would crash the derivatives market for a while. the economy is still fragile. that's the argument there. >> it is indefensivable. i don't care if you're a 4-year-old from mars, if i tell you i'm going to gin up exotic instruments and that i need to get a good housekeeping seal of approval, called a aaa rating in order to sell this concoction of bonds to the retirees that, the ...

Leverage that that pension manager is going to take it in the gut. i don't know whether you need an intellectual infrastructure or not in washington to understand the obvious and disastrous conflict of the fact that the regulators and the ratings agencies, ezra, not that you came up with this -- but that those people work for the banks. i don't know how, do i need a think tank to figure out that that's a conflict of interest? >> we're in agreement on this part in particular. and it's why what is so weird about the bill is how weak it is on ratings agencies. there are a lot of these bits that a...