It's interesting that my points on the problems with pensions are now being echoed by some key Republicans. At
http://news.yahoo.com/s/ap/20050607/ap_on_go_co/pension_oversight;_ylt=AswFwGbGIbHvI1Qb0vLBMius0NUE;_ylu=X3oDMTA2MTQ3MTFjBHNlYwN0cw-- http://tinyurl.com/azltm we have a critique of the pension system that includes a number of the points I made. <quote> "In addition to allowing plans to book phantom investment gains, United was able to use stale, non-market interest rates to value pension liabilities, thereby further disguising funding deficits. In other words, our pension laws tell these companies, 'Take off the green eye shades and put on rose-colored glasses,'" Sen. Charles Grassley (news, bio, voting record), R-Iowa, said in his opening statement. The chairman said current law allows corporate deception similar to criminal activity alleged at Enron Corp., adding: "The same blinders that United put on are used by companies everywhere." <end quote> and <quote> Under current law, the only way an airline can avoid burdensome pension costs is by entering bankruptcy and terminating the plans," said Duane Woerth, president of the Air Line Pilots Association, in remarks prepared for the hearing. "But if more and more airlines choose to shed their pension liabilities in bankruptcy, it sets up the potential for the 'domino effect,' in which all the other legacy carriers are incentivized, or even forced, to file bankruptcy, in order to achieve the same cost savings and level the playing field," Woerth said. One member of the finance committee, Sen. Jim Bunning (news, bio, voting record), R-Ky., complained the government was encouraging corporate mismanagement through its lax rules covering pensions. He was also critical of bailout money provided to the airlines last year that was not spent to bolster pensions but used to pay other debts. "I want to know why we should reward lousy management," Bunning said, his voice rising in anger. <end quote> I'm glad to see that there are still sensible Republicans (like Bush 1) who know that voodoo ecconomics don't work. Maybe a father and son talk would help our deficits. :-) Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
