(Illinois Governor) Pat Quinn floats the idea of a pension bailout

The Fund Managers, the Unions, or the employer, invariable get bailed out as they took risks with other peoples money, lost it, and now get to walk away. The employee has an obligation to ensure his money is being well managed. If his pension is taking any risks or is under funded it is as much his fault as it is anyone else's.


It's you who took the risk in lending the money.

"Society" didn't say, "Let's lend an anonymous person on the internet a whole bunch of cash", you did. And while if I go bankrupt, you might be first in line to collect, you can't expect your neighbor who's smart enough to manage their money more carefully to bail you out.

I can't understand who you want to lose out in this situation. Is it the pensioners? I can't see any reason the nation should be responsible for paying this debt, but as long as the state has any mechanism at its disposal for making good on the contract, I don't understand why the pensioners should be the ones to take a bath.

If I've lent you money, and you've been irresponsible with it, yes, I assume some risk, but not as much risk as you. You're still on the hook until all repayment options have been exhausted.

Except governments can't go bankrupt.

Worst case scenario--the state is put into receivership by the Federal government (which has never happened, but is theoretically possible). Essentially, the Feds appoint a receiver who is empowered to raise taxes, cut spending, hire/fire, and do whatever he deems necessary without consulting the state's elected gov't to ensure that the state meets its obligations.

Bankruptcy is a good. It allows bad businesses (or governments) to leave the market, making way for new competitors. Can you imagine a world where there is no bankruptcy and every bad company still operates?

I've seen a lot of strikes, but I've never see people strike because their pension fund was under-funded. Why didn't the wonderful glorious unions protect their members?

Can you imagine a world where there is no bankruptcy and every bad company still operates?

Those who took the risks. The taxpayer did not take any risk here, so I believe they should be off the hook.

Wait a minute, there. Illinois still operates a representative government (ostensibly, at least), right?

Wait a minute, there. Illinois still operates a representative government (ostensibly, at least), right?

GM was a debtor. I'm talking about people cheering on creditors getting destroyed.

When Obama gave a large stake of new GM to the UAW, he fleeced the creditors pretty well. Along with, of course, the federal treasury.

It still sticks in my mind talking to a person who, during the pre-bankruptcy GM, said, "I'm going to buy some GM bonds because even if they go bankrupt those will be the first things paid."

Even if you say that the pension is a promise from the voters, you have to say which voters. Obviously, the younger generations are not responsible. In many states 40% of the population is not responsible. Of course how does one distinguish?

How does one justify a pension as being a promise from the voters? I don't ever remember voting on benefits for public workers.....
That's the big problem I have with public unions. It's a huge conflict of interest to get your guy in office, then go to him and tell him this is what you want in return.
Public unions in the from that they currently are in, should be outlawed.....