The Problem with Pensions
By John Mauldin
August 6, 2010
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August Surprise from Obama?
The Problem with Pensions
Whither China?
Sadly, I find myself with more than enough time to
compose yet another Thoughts from the Frontline in an airport, as a flight
booking error has me at JFK for six hours instead of fishing in Maine. Details
for those interested or amused at the end. But it does allow me to offer you a
peek into a very sobering report on how badly underfunded public pension are. The
situation is worse than you think. Then we will close with a eye-opening report
on China from the gracious Simon Hunt, who is allowing me to reprint his latest
missive in toto. You really want to read this one. And we start with this rumor
from Reuters, just in. Read this and weep. It comes from James Pethokoukis.
Political Risk: An August Surprise
from Obama?
"Main Street may
be about to get its own gigantic bailout. Rumors are running wild from Washington
to Wall Street that the Obama administration is about to order
government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion
of the mortgage debt of millions of Americans who owe more than what their
homes are worth. An estimated 15 million U.S. mortgages - one in five - are
underwater with negative equity of some $800 billion. Recall...
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