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Subject:  Re: IBM Must Pay in Pension Switch Date:  2/20/2004  7:01 PM
Author:  mcain6925 Number:  39318 of 88051

Despite this victory, I'm afraid that the next several years are going to be pretty ugly for retirement programs. For the past 30+ years, big government and big business have promised the boomers that they would get big payouts in their turn if they would accept higher payroll taxes and lower wages now. Well, the time is almost upon us and neither of the "bigs" have enough money to honor their promises. Since the politicians can't get reelected if they do either of (a) cut benefits enough to matter or (b) raise taxes enough to pay the bills, I expect them to resort to printing money on a massive scale. Big business doesn't have that option, so I expect that eventually we'll have a wave of bankruptcy proceedings with the goal of shedding pension liabilities. A few months back, an article in The Economist stopped barely short of posing the question, "Which of the Big Three automakers will be first to declare bankruptcy to dump their pension obligations?"
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