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A deeper look into the trouble ahead for Pension Funds

Cory
November 22, 2016

A new guest Greg Melia, President of Melia Advisory Group was introduced to me through a friend in the financial world. Greg caught my eye through his comments on Pension Funds. He outlines how underfunded pensions are in the US and backed the argument up with reasons why these funds will continue to struggle.

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Click here to visit the Melia Advisory Group website.

Discussion
55 Comments
    Nov 22, 2016 22:40 PM

    Greg failed to mention that some pension reductions are disallowed by the State Constitution. I believe that Illinois fits into this category and the courts stopped a previous attempt to correct some of the deficiency by reducing benefits.
    It is a compounding problem as he states, getting worse every day. Another problem with public pensions is that the legislature prevents the fund from investing into risky areas, yet that same legislature keeps giving away higher benefits to future retirees. In many cases, they are demanding higher contributions, mostly from the employer, ie city, county, state as opposed to the employee contribution.
    Good subject and good comments. Thanks Cory.

    Nov 22, 2016 22:28 PM

    Mark my word, they will bleed the taxpayers white.

    And the taxpayers are idiots, anyway. They will let it happen.

    Hell, they will even make it happen.

    Do you know that about 80% of local tax increases and bond measures pass?

    Where I live two bond measures passed for the government run youth indoctrination centers…er…public schools.

    The schools were crying that they had to have the money because they didn’t have enough money for maintenance and other vital things so they had to have these measures pass.

    Why didn’t they have the money? Because money that should have been going for their facilities was going into pensions and raises for administrators and teachers.

    Anyway, the idiot voters passed both measures. It amounts to about a half billion dollar tax increase for home owners.

      Nov 23, 2016 23:28 AM

      1 out of 7 on Food stamps…Less tax payers every day.

        Nov 23, 2016 23:29 AM

        City and state will be taxing the heck out of real estate

    Nov 22, 2016 22:14 PM

    Dallas on Verge of Bankruptcy Due to Pensions; Just a Matter of Time (For Dallas, Houston, LA, Oakland, Chicago, etc)

    https://mishtalk.com/2016/11/22/dallas-on-verge-of-bankruptcy-due-to-pensions/

      Nov 22, 2016 22:14 PM

      The fund needs a billion dollars in funding this year, the equivalent of the entire city budget, just to keep up with outflows.

    Nov 22, 2016 22:45 PM

    Trump Won’t Pursue Charges Against Hillary: “She’s Been Through Enough”

    After Trump stunned the nation during the second presidential debate with Hillary Clinton, in which he quipped that under a Trump presidency “she would be in jail”, and suggested that he would demand a special prosecutor probe into Clinton’s email server and the Clinton foundation, moments ago MSNBC’s Morning Joe reported, citing a source, that president-elect Donald Trump will not pursue any investigations into his former political rival Hillary Clinton “for her use of a private email server and the Clinton foundation.”

    Trump reportedly feels that Clinton has “been through enough.”

    rest of article and plenty of comments…

    http://www.zerohedge.com/news/2016-11-22/trump-wont-pursue-charges-against-hillary-shes-been-through-enough

      Nov 22, 2016 22:13 PM

      Billary is going to get away with the couple hundred million they pilfered through their charity fraud. Thanks, Trump!

      Just proves laws are just for the peons.

        Nov 22, 2016 22:40 PM

        Billy and Hilly are not in the clear yet. Mid February will see states and foreign governments going after the foundation.

          Nov 22, 2016 22:43 PM

          Talk about ….. “it ain’t over till the fat lady sings”

          Nov 22, 2016 22:45 PM

          Yes, I heard Ortel say he thought they might have a chance in foreign courts or in state courts.

          Of course, he was basing that on Hillary winning the election. Wonder if he thought Trump would stab him in the back.

            Nov 22, 2016 22:30 PM

            Conservatives “Betrayed” By Trump Decision To Kill Clinton Probe

            Trump’s decision not to appoint a special prosecutor to pursue a criminal probe into Hillary Clinton’s email server or the Clinton Foundation, confirmed by top advisor Kellyanne Conway on Tuesday morning, appears to be is the first major break the president-elect has had with his diehard fans. In what The Hill believes was the first indication of “strains in the relationship” conservatives expressed “feelings of betrayal” on Tuesday after Conway said – and Trump subsequently confirmed during his meeting with the NYT – that the incoming administration would decline to pursue a criminal case against former rival Hillary Clinton.

            And indeed, some prominent conservative critics were livid.

            Breitbart News, whose former executive chairman, Steve Bannon was recently named as a senior advisor in his White House, slammed Trump’s decision as a “broken promise.”

            http://www.zerohedge.com/news/2016-11-22/conservatives-express-betrayal-trump-decision-kill-clinton-probe

            Nov 23, 2016 23:34 AM

            What people have said for so long appears to be correct.

            Democrook or Republoclown, they are just different wings of the same corrupt bird of prey.

            Expecting reform from within is naive.

            The Republoclowns could have nominated Mother Theresa and they still would have been corrupt to the core.

            Both of these parties are corrupt to the core as is the whole system. And that is not going to change.

            Mr. Big Al Korelin, sorry that you flushed 500 bucks down the political crapper.

            That could have bought a lot of shares of Rye Patch (about 3125 shares). 🙁

            Nov 23, 2016 23:07 AM

            Never heard that from Ortel….I can to that conclusion on my own OOTB thinking….

            Nov 23, 2016 23:31 AM

            Can to came …..

      CFS
      Nov 22, 2016 22:01 PM

      Incorrect

    CFS
    Nov 22, 2016 22:08 PM

    That Hillary will not be prosecuted was INCORECTLY reported.

    Yes, Trump said she has suffered and is not well.

    BUT, he also said a prosecution determination will be made by the next attorney general. It is not something that should be determined by a President.

    This (My CFS Words) is how things should be done……i.e. Trump does not want to be seen to act like a dictator. (Unlike, (again My CFS Words), the bastard in the White House.

      Nov 22, 2016 22:47 PM

      Trump also said he thought the Clintons are “good people” and he “didn’t want to hurt them.”

      WTF? They are criminals and justice must prevail!

      I hope I am wrong, but I think you are going to be very disappointed in Trump.

        Nov 23, 2016 23:32 AM

        That would be .. “good” for nothing.

      GH
      Nov 22, 2016 22:07 PM

      All good people should continue to call for her head. But it goes much deeper even than the vile HRC. If there aren’t widespread purges of the criminal and corrupt, what lasting change can occur?

        GH
        Nov 22, 2016 22:18 PM

        But the reality is that Trump is as a flea to the real power players, I imagine.

    CFS
    Nov 22, 2016 22:12 PM

    By the way, not reported in the MSM, the president ordered the shut down of all border patroll drones yesterday until further notice.

      Nov 22, 2016 22:15 PM

      Less than 60 days …and the moron is gone

        Nov 22, 2016 22:18 PM

        I hope he has a copy of his birth certificate and his college transcripts

      Nov 22, 2016 22:28 PM

      Obama Pressured To Free Central American “Asylum Seekers” Before Trump Takes Over

      Just two days ago we shared our complete shock that Obama’s justice department agreed to stay a federal court case, that would have granted amnesty to 4 million illegal immigrants, citing a “change in Administration” (see “Trump Wins Again – Obama DOJ Halts Amnesty Lawsuit In Uncharacteristic Display Of Humility”). But some immigration advocates are refusing to give up the fight and, as Bloomberg notes, are urging Obama to use his last couple of months in office to release nearly 4,000 “asylum seekers” from Central America currently being held in “jail-like” facilities in Texas and Pennsylvania.

      http://www.zerohedge.com/news/2016-11-22/obama-urged-free-central-american-asylum-seekers-trump-takes-over

    CFS
    Nov 22, 2016 22:31 PM

    patrol not patroll

    Nov 22, 2016 22:11 PM

    Every man should work, no matter what his age. If he wants an end-of-life vacation, he should pay for it himself out of his gold and silver savings.

    CFS
    Nov 22, 2016 22:27 PM

    Balmoral drills 6.43 m of 4.36 g/t Au at Martiniere

    2016-11-22 07:37 ET – News Release

    Mr. Darin Wagner reports

    BALMORAL INTERSECTS 6.43 METRES GRADING 4.36 G/T GOLD WITHIN 48 METRE WIDE GOLD ZONE IN DEEPEST HOLE TO DATE AT BUG LAKE

    The first of three deep holes drilled this summer on Balmoral Resources Ltd.’s wholly owned Martiniere property in Quebec has successfully extended the Bug North gold deposit to a vertical depth of approximately 550 vertical metres. This intercept, the deepest to date along the Bug Lake gold trend, increases the known vertical extent of the Bug North deposit by 140 metres (or 36 per cent) and confirms that the deposit remains open down plunge for further expansion.

    CFS
    Nov 22, 2016 22:21 PM

    The OTC and LBMA options expiry on the 30th of November.
    So no imminent attack on gold is of vital importance to the bankers right now, although they loveto use low volume times to attack.

    CFS
    Nov 22, 2016 22:34 PM
      Nov 23, 2016 23:06 AM

      Thanks for that other Gwen post from the MIF. She had some good companies on her list.

        CFS
        Nov 23, 2016 23:15 AM

        Historically attacks always come at lowest volume times of day and month.

          Nov 23, 2016 23:32 AM

          ? – do you mean on gold or on the stocks Gwen referenced?

            Nov 23, 2016 23:34 AM

            Oh, I see now, CFS I think your post was to Ozibatla below. Disregard my question then.

    Nov 23, 2016 23:45 AM

    Interesting CFS, do you think they place much importance on low volume as to when they decide to “play their hand”? Or do they not care what the conditions are due to the size of their paper contract piggy bank?

    Nov 23, 2016 23:04 AM

    Native American( Indians.)…ready to give Obamy the final bird .
    Happy Thanksgiving…ya all.

      Nov 23, 2016 23:14 AM

      How much paper gold day selling today ! ? Nothing Ever Changes !

        Nov 23, 2016 23:25 AM

        Trump will helpe billing the ( New EU Army ) !

          Nov 23, 2016 23:09 AM

          Nothing new under the sun …

        Nov 23, 2016 23:31 AM

        Nothing Ever Changes ! …is correct

        They are dressing the holiday with strong dollar, weak gold, market higher. They will take advantage of the thinly traded markets until the first of the year.

        Not to mention:

        1. Banks will continue to be allowed to commit usury & Fraud. Get a wrist slap and pay a percentage of the theft with a fine.
        2. Gold will continue to be manipulated through a paper ponzi scheme
        3. Big Pharma gets to pick the public’s pocket along with big health.
        4. There will be tax cuts with no plans for the 80 million lost jobs due to automation and robotics in the next two decades.

          Nov 23, 2016 23:11 AM

          Nothing …

          Nov 23, 2016 23:25 AM

          More fraud till they decide to throw the ring leaders in jail….

      Nov 23, 2016 23:15 AM

      Ditto on the final bird in regards to Hillary.

      Foreign Governments Cutting off Funding for Hillary

      Hillary supporters claimed that the Clinton Foundation was an innocent, “charitable” organization. On his proposed first day to “Drain the Swamp,” Trump will impose a LIFETIME BAN ON LOBBYING FOR FOREIGN GOVERNMENTS. Numerous foreign governments handed money to the Clintons purely for “influence.” The corruption with Norway’s link to the Clinton Foundation extended to Obama.

      This was the reason Obama was given the Noble Peace Prize, and Jens Stoltenberg, who approved the half-billion donation from Norway to the Clintons, was made the head of NATO in Europe.

      https://www.armstrongeconomics.com/international-news/north_america/2016-u-s-presidential-election/foreign-governments-cutting-off-funding-for-hillary/

        Nov 23, 2016 23:13 AM

        Her too …..birds of a feather

    Nov 23, 2016 23:05 AM

    It’s a good sign that I’m down less than 2% today while the ETFs are down 6%+.

    I wonder how many people who missed the January low are buying right now. I would say probably about zero.

    Good times…
    🙂

      Nov 23, 2016 23:50 AM

      Matthew:

      Running the stops on a slow day just before Turkey day. It’s not a big deal, it’s a big opportunity. The spec longs are going to be way down next week, they all got taken out today. The commercials will be blamed but it’s the spec longs doing all the damage, gold is moving from weak hands into strong hands as it always does.

        Nov 23, 2016 23:06 AM

        I agree completely and am glad the move below 1200 gold came now rather than after a sizable relief rally.

        On November 17, 2016 at 12:50 pm,
        Matthew says:
        Because the daily chart is already oversold, I think short term downside is limited to the 1190 area. And I would like to see such a move precisely because it would cause so much fear.

          Nov 23, 2016 23:07 AM

          I’m sticking with the following chart…

          On November 17, 2016 at 11:51 am,
          Matthew says:
          Big trend changes are always followed by big and convincing shakeouts:
          http://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=6&mn=0&dy=0&id=p95500838401&a=487177468

          Nov 23, 2016 23:41 AM

          Matthew – I added to my Gold and Silver mining positions today, and had a similar take on things that you guys are discussing. I figured it was Pre-Turkey day selloff in the metals and miners, a Dollar blowout, and stock market holiday rally based on the current sentiment.

          This sentiment may carry on further through the year end, but I was looking for $1180 to hold as support before getting a relief rally. That James Flanagan video from Gann Global Financial also resonated with me that this is a good place to bottom, consolidate, and start the next leg up.

          Now if we get a decisive close below $1180 today or Friday, then it would appear the Dec lows may get tested and I’d buy again if Gold drops another $100-$120 lower, to position for a W-shaped double bottom in gold.

          Anyway – for today, I’m adding to miners with the thought that $1180 may hold for support and we may rally next week in the miners.

      Nov 23, 2016 23:14 AM

      Russell up and running

    Nov 23, 2016 23:43 AM

    Interesting comments for oil and CD aficionados. http://news.goldseek.com/SpeculativeInvestor/1479912387.php