Gruss Gott wrote: > Jochem wrote: >> But the way I see it Gruss Gott's conclusion that State and >> Municipal pension funds are soon > > It's not coming out of thin air, it's been happening for decades.
What has been happening is that the deficit has been increasing for decades. Defaulting has not been happening for decades. Why would there suddenly be defaults? > And there is a proposal to change the accounting standards so that > citizens can start seeing the problem. So that might make the problem visible to Joe average. *Might* I say, because personally I am betting on this thing called cognitive dissonance. But assuming it does: so what? What does that really mean? Does that increase the liabilities? Does that reduce the assets? In terms of the real economy it doesn't mean anything, it is just numbers. It becomes real when people start basing decisions on it. Like hiring people through temp agencies instead of directly or reducing benefits packages for employees. Then it becomes real. Until then it is just another number on page sixhundredandthirtysomething of a financial report that is only being read by people that do this type of calculation on the back of a napkin anyway. Furthermore: would defaulting local/state governments even be elegible for support? Jochem ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Purchase RoboHelp from House of Fusion, a Macromedia Authorized Affiliate and support the CF community. http://www.houseoffusion.com/banners/view.cfm?bannerid=59 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:157688 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
