You are here

Business

Here's How Government Pension Funds Are Trying To Close Their $7 Trillion Funding Gap

Here's How Government Pension Funds Are Trying To Close Their $7 Trillion Funding Gap

Authored by Simon Black via SovereignMan.com,

There may perhaps be no other group of investors that’s more DESPERATE today than pension funds.

Pensions, of course, are the giant funds responsible for paying out retirement benefits to workers.

The idea is that both the employer and the employee typically contribute a set percentage of the employee’s salary throughout his or her career with the promise that, upon retirement, he or she will receive a fixed monthly payment.

Jamie Dimon's Memo To JPMorgan Employees: "I Strongly Disagree With President Trump's Reaction "

With Trump's key economic advisory forums now disbanded following a mass exodus of corporate CEOs, moments ago JPM CEO Jamie Dimon joined the pile up stating that "the members of the President's Strategic and Policy Forum agreed to disband" and noting that "the group put out its own statement" he wanted "you to understand why I personally supported this decision and how strongly I feel about these issues."

His argument:

Stocks, Dollar & Yields Sink After Fed Warns Of "Elevated Vulnerabilities" From High Asset Prices

Stocks, Dollar & Yields Sink After Fed Warns Of "Elevated Vulnerabilities" From High Asset Prices

The initial reactions wre modest but directionally 'correct' given the dovish bias to the Fed Minutes - stocks are up, bonds are up (lower in yield), and the dollar is down. But then traders read the warnings that due to excessively easy financial conditions, "a tighter monetary policy than otherwise was warranted", something Goldman has been warning about for months, and stocks sank.

To be sure, there were 3 very dovish quotes:

Pages