the NYT did the state and its readers a disservice in going after California’s pension fund liabilities. The basic story is that if you assume a 4.14 nominal rate of return on pension fund assets, then the state’s pension liabilities look really really bad. The big question that readers should ask is, so what? There have been few people who have been more critical of assuming exaggerated market returns than me, but 4.14 percent nominal? Anyone want to take a bet that California’s pension funds will do better than this?

Read full article [here].
by Dean Baker, Beat the Press.

Posted: April 6th, 2010, by: admin. Categories: . Awaiting Comments.