Tuesday, March 30, 2010
The Hidden Pension Blame
Investors Like Steve Rattner
The mayor and the NYP take after the FDNY First Deputy Commissioner Frank Cruthers for obtaining a 242,000 yearly pension. Both Bloomberg and the NYP blame the workers Mike: Stop these runaway pensions Why we're broke (NYP Ed) The mayor said "The issue that we have is that the whole pension system is something that we cannot afford."
Blaming the workers for the pen ions mess is a little like blaming the home owners for the sub prime mortgage melt down. Blame on that scandal rightly fell on the Wall Street investors who pay off the congress to allow the system to be set up where crooks like AIG made billions. The pension game works the same way. Billions were made by money managers, developers and investors who got their hands on the pension funds. Not a word in the NYP or by the mayor on pension fund investors. Could it be that many of those investors who gain from unlimited pension fund investments were developers and other power plays in the city. Look at the Stuy Town mess. Friends of the mayor. Even the mayor's own investor Michael Bloomberg Defends Steve Rattner: “A Great Public Servant ... *** Steve Ratner Pension Mess
The damage done to the city by the pension funds is the same as sub prime mortgages done to the nations economy. It just that the blame is selective and controlled. Manhattanites are leaving. In 2009, a net 2,545 residents decamped. Manhattan hadn't lost population since 1992. This year, New York will spend nearly $25 billion on pensions, health benefits and Medicaid alone -- plus the debt we need to pay it all and still have some infrastructure. That's more than half of city tax revenues -- and twice what these categories cost us (also after inflation) eight years ago.
The payments to the state's more than 600 school districts were scheduledMarch 31, and will be made before they are legally due on June 1, "assuming sufficient cash is available," Paterson said in a statement.