Federal pension agency in trouble

Some quotes I picked regarding the federal efforts to rescue private pensions.

Mr. Neal’s plan to address “multiemployer” pension plans — private-sector arrangements between firms and labor unions such as the Teamsters or United Mine Workers — would be catastrophic to adopt. These pension plans cover around 10 million individuals, and measured properly they faced a funding hole of $722 billion as of 2016.…..The loan approach is based on the idea that if the plans get a low-interest loan from the government, and then invest the proceeds in risky assets and target a high return, the loan can be repaid in full. Mr. Neal argues that this proposal does not constitute a bailout because “the federal government is simply backstopping the risk.” But the loan program is in effect a taxpayer bailout. Ultimately, the taxpayers lose if the plans do not return to fiscal health. In fact, the proposal now in Congress is similar to disastrous pension obligation bond issues under which state and local governments went on to sell bonds to the public and put the proceeds at risk in investments that they hoped would earn high returns.

The government housing agency will be hit by the housing slowdown, student loan guarantees will cost, now add in pension failure.  This is all happening at the proper pro-cyclical moment, when rates are hgh and the Swamp  has to shut down as no one wants to cover interest charges.

The Swamp politicians have created humongous obligations,they intend to increase debt and millennials will see their federal interest charges go up from to over five percent of income, we will get a rebellion.. The millennials have asymmetric information, a lot of information hiding going on as Treasury scrambles to cover interest charges.  This is not good, we cannot lie to these kids, it will comeback and haunt us like what is happening in France.