- #246
DrClapeyron
Unions will definitely lose their pension funds if the so called Big Three are not bailed out. This bail out means giving money to the automakers to make payments to unions who can make pension payments to their retired members.
The largest pension funds in this country are taking huge hits which means current benefactors must take the hit. California's Calpers lost some $40 billion dollars within the past 6 months, 20% of the fund's total value.
Automakers can definitely operate in debt, no doubt about it, our country operates in debt and has done so for almost 20 years. Why bail out now? A mass explosion of retirements brought on by the baby boomer generation will force both higher pension fund payouts and higher social security payouts. That was the hot topic of the 1990's, social security reform, and we've been seeing it in the news for at least the past 10 years that automakers (and other industrials ie airlines) cannot make the outrageous payments to pension funds (or unions) and not indebt themselves. We saw this one heading from a mile away.
I guess it comes down to this: how much do you love grandpa?
The largest pension funds in this country are taking huge hits which means current benefactors must take the hit. California's Calpers lost some $40 billion dollars within the past 6 months, 20% of the fund's total value.
Automakers can definitely operate in debt, no doubt about it, our country operates in debt and has done so for almost 20 years. Why bail out now? A mass explosion of retirements brought on by the baby boomer generation will force both higher pension fund payouts and higher social security payouts. That was the hot topic of the 1990's, social security reform, and we've been seeing it in the news for at least the past 10 years that automakers (and other industrials ie airlines) cannot make the outrageous payments to pension funds (or unions) and not indebt themselves. We saw this one heading from a mile away.
I guess it comes down to this: how much do you love grandpa?