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: Instapundit.comEVEN WITH ROSY ASSUMPTIONS, public pensions are deep in the red. ?A 2010 Pew study on public pensio?
By Glenn Reynolds
EVEN WITH ROSY ASSUMPTIONS, public pensions are deep in the red. “A 2010 Pew study on public pensions nationwide put the funding gap at about a half-trillion dollars based on states’ own assumptions. But Novy-Marx and North western University’s Joshua Rauh say it’s $3 trillion using a risk-free discount rate.” I think a 4% rate is realistic. But note how bad things look assuming even a 6% return.
Full post as published by Instapundit.com on March 26, 2011 (boomark / email).
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