Punching Stupid and Evil in the Face Since 1986!

"We are on strike, we the men of the mind. We are on strike against self-immolation. We are on strike against the creed of unearned rewards and unrewarded duties."-John Galt

Thursday, April 15, 2010

GM's Pension a boondogle ready to burst all over the American people?

In what is just one more example of this Administrations inability to see beyond the end of their nose, you know, even into next week, it was recently disclosed that both Chrysler and GM face unfunded pensions plans for retired and current employees. With more than half of a $27 million shortfall being owed to U.S. beneficiaries, the GAO says the federal Pension Benefit Guarantee Corp. will face an unprecedented crisis as these benefits mature.
When the two automakers emerged from bankruptcy reorganization the pension problems were seen as a more distant issue, and presumably one that would be eased by economic growth. But the auto industry is facing a slow recovery, and neither the new GM nor the new Chrysler has produced a profit.
Really, I'm just wondering who this news is shocking? The whole time they talked of bailing out the automakers I said the money would never be paid back, because there was no predicting when they were going to be profitable again. Now we find that, SURPRISE they also don't have enough money to fund benefits that bankrupted the company to start with. Do you suppose there is any chance they are starting to see the unintended consequences of thinking anyone is too big to fail? Pension funds will be next. Where does it end?