Hoping to retire before you turn 70? Too bad.
The world’s richest countries need to drastically hike their retirement ages in order to prevent pension systems from collapsing, according to the World Economic Forum.
Working until at least 70 should become the norm by 2050, the group recommends in a new report. The average retirement age is currently 65 for men in advanced economies and 63 for women.
Here’s the problem: People are living longer than ever, but the average retirement age has remained static. Pension funds have been unable to keep pace.
While it’s the latest new thing to vilify public employees and their pensions, this little known and understood threat is doing just as much damage:
In 2002 a little-known but powerful state agency in California and Wall Street titans Morgan Stanley, Citigroup, and Ambac consummated one of the biggest deals to date involving … an “interest rate swap.” A year later the executive director of the Bay Area’s Metropolitan Transportation Commission, Steve Heminger, proudly described these historic deals to a visiting contingent of Atlanta policymakers as a model to be emulated.
Because of the economic collapse, and the decline of interest rates in 2008 to virtually zero, the MTA has been forced to pay the amazing sum of $658 million in net swap payments so far.
Lowering interest rates to zero isn’t Fed policy, it’s Wall Street policy – Ed.
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Tagged banks, business, CALPERS, credit default swaps, Depression, derivatives, economy, ethics, financial crisis, financial institutions, funding, Goldman Sachs, meltdown, morgan stanley, pension funds, people hate banks, Recession, They are all a bunch of bastards