LOL LOL ... all very funny, in a black humour sort of way.
The really funny thing about the defined benifit scheme of super is that it's a type of pyramid scheme.
...you see, a large portion of US super contributions are 'invested' in SP500 companies. Falls in US equities have thus have a direct impact on the size of pension liabilities... and as those pension liabilites grow, the earnings of SP500 companies get squashed as their liabilities kill earnings...
... and on it goes... a vicious circle.
Falling equity markets > increased shortfall in pensions > decreased earnings > further falls in capital markets > and the cycle starts again...
The really worrying part is the SIZE of the unfunded liabilities... they're truly massive.
If pension liabilities, option expenses, R&D costs, and asset sales were all accounted for properly, we'd be look at SP500 aggregate earnings more than 50% below current levels...
GO GOLD !!
LOL LOL ... all very funny, in a black humour sort of way.The...
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)