William F. Sharpe is a Nobel Prize-winning economist at Stanford University. He has long been critical of the phony way public pension numbers are reported, hiding the scope of their problems. (See our earlier article linked here about what he and another Nobel economist have said.) Here are two short, simple videos he posted on the subject.
The first is particularly timely because it’s about pension obligation bonds, which Illinois Governor JB Pritzker has proposed using. That’s when the government borrows money to pay down its pension debt:
The second is about pension reporting in general:
–Mark Glennon is founder of Wirepoints.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
The Chicago Symphony strike concluded with the end of db pensions for new players. That is a huge victory for the Board. Or maybe it was inevitable. There is simply no way a private business like the CSO can keep operating with the risks of pension obligations. The LA Phil just came out with a great cd of John Williams music conducted by Gustavo Dudamel. That was a great concert I attended at Disney Hall. I was surprised to find out that the LA Phil doesn’t offer its players pensions, even if it is in the best financial position of… Read more »