General Stock Ideas

[bigworld]

SCSTOCKS: Just the Tip of the iceberg. Dallas would have to raise property taxes to the tune of $1 Billion to shore up those pension funds. There would be blood in the streets if they did that. Towns and cities all over the country have made grand promises to government workers that they never adequately funded. The actuaries estimated 8-10% return without end. Once we get the crash that is massively overdue there won't be a solvent government pension plan in the country. There are going to be a lot of haircuts for pensioneers, a lot of haircuts for government bond holders. Its going to be bloodbath, pitting taxpayers against retired government workers. Lots of States are in precarious financial shape. They won't be able to help. Look for lots and lots of government bankruptcies at the city and county level. States have no legal mechanism for bankruptcy per se, at least as the current Bankruptcy laws exist. But massive revolts by taxpayers will meet the huge tax increases that the States will try to impose to stay solvent. Just to avoid these state and local taxes it might be necessary to retire overseas.