Pensions Suffer Largest Losses In History During Q1, States Seek To File For Bankruptcy, New Poll Video by Silver Report
Pensions have suffered the largest losses in history during Q1 as the stock market sell-off took a mighty toll on many retirement accounts. One of the main issues that have been draining state finances and leading to increasingly higher taxes has been the underfunded pension liabilities.
One interesting difficulty that has led to excessive risk has been the demands to create large returns and when losses are this high it means the more will be demanded from the state’s budget.
For some of the higher tax states, this could be their downfall. The request for state and city bailouts has already been denied, so far but the other option being suggested is to give states the right to file bankruptcy as they aren’t able to at the moment. Next, we bring up a recent poll from CivilScience which showed 31% of respondents say they won’t return to normal even if they were told to. According to their data only 14% said they would resume normal activity immediately which means the economic recovery may take longer after all.