ZIRP continuing to destroy local government finances... its a bad idea.
The Stanford study found that the states of Illinois, Arizona, Ohio and Nevada, and the cities of Chicago, Dallas, Houston and El Paso have the largest pension holes compared with their own revenues.
In order to deal with the large funding shortfall, many cities and states will have to increase their contributions to their pension funds, either by raising taxes or cutting spending on vital services.
With lower interest rates, a 7.5% return is unrealistic. -US faces ‘disastrous’ $3.4tn pension funding hole -https://t.co/hA5Za8uTln via @FT— Pierre Lemieux (@pierre_lemieux) April 11, 2016