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The pressure to bailout is lessened when the assets are owned by an intermediary institution. It took until the third covid free money bill for the multiemploye
by bradleyjg 6y ago
The pressure to bailout is lessened when the assets are owned by an intermediary institution. It took until the third covid free money bill for the multiemployer pension fund to get nearly a hundred billion of dollars with no strings attached. Meanwhile housing has been bailed out several times since those funds started ailing.
- lotsofpulp 6y agoThe biggest owners of pension fund assets (and hence liabilities) are governments themselves, whether it be city, state, or federal. Multi employer funds also got bailouts via all the asset inflation, but I assume you are referring to an explicit cash transfer bailout, which I am not aware of. I am simply referring to the continuing trend of devaluing currency and inflating assets to fulfill debt obligations. In which case pension funds only serve as unnecessary middlemen where a target date fund from Vanguard/Fidelity/Schwab will do just the same.