SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: yard_man who wrote (4081)4/12/2004 10:51:04 AM
From: reaper  Read Replies (1) of 116555
 
it should not change earnings, nor should it effect pensioners, at least in the near term.

the "relief" is just an accounting fiction which lets companies delay cash contributions to their pension plans. it does help near-term cash flow, but has no impact on long-term cash flow (the pension obligations are what they are; changing the accounting doesn't change that).

now, it could impact pensioners down the road IF the lack of contributions TODAY thanks to the "relief" means more companies / plans end up going bankrupt down the road. my understanding is that if a plan is taken over by the Federal agency that insures pension plans (the PBGC) the typical pensioner will get less than what he would have gotten if his company / plan had stayed alive.

so, at the end of the day, this is typical of what Congress / this president do. NO benefit to the regular guy (and potential large losses, but down the road when nobody will be in office any more) and some but dubious benefits to the corporation.

Cheers
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News