Most people are not aware of the public pension crisis currently underway with the exceptions of the politicians and government employees its effects. This is unfortunate because those that will be asked to pay the bill are precisely those that are in the dark. We have discussed the pension crisis in the past and will continue to do so as we believe it is one of the biggest risk, if not the biggest risk confronting the US economy. The magnitude of the number is mind-boggling. The PEW Charitable Trusts estimates the public pension systems are underfunded by more than $1 trillion dollars. Moody's estimates the figure at about $1.75 trillion. With baby boomers retiring in increasing numbers, it is just a matter of time before a major pension system will run out of assets with which to pay retirees.
