Pension Benefit Guaranty Needs Bailout

msnbc.com:
"The government-chartered company that insures the pensions of one in seven Americans said Friday that its deficit this year nearly doubled to $22 billion.

That’s an improvement over the Pension Benefit Guaranty Corp.’s midyear record deficit of $33.5 billion, which spiked as auto makers and other companies faltered and caused the insurance fund’s liabilities to spike.

Yet experts and officials say the long-term picture is grim. They say that without major changes, such as higher insurance premiums and less risky investments, the fund eventually will require a taxpayer bailout."

My comment: Why is the government guaranteeing peoples pensions? This is the problem, if people know the government will backstop every risk they take in their life then they take no interest or responsibility in ensuring their pension, their healthcare, their bank accounts are being administered by competent people. The implicit guarantees of government then allows people running these institutions to take risks that are above and beyond what they would normally take if they had no government guarantee. The idea that the government can wipe away every tear and make every boo boo well is stupid and yet many Americans do not get a simple truth. No one is responsible for you except you. Quite frankly, with the exception of your mother and maybe your close family no one really cares about you or your problems. Why should they, they have their own problems. The continued view that all risks should or can be socialized is what will eventually bankrupt the country in my view.

John Polomny
The Real Deal