This is what happens when savers and pension plans take their investment advice from the risk-selling investment bankers: too little is contributed and great hopes are pinned on financial speculation rather than reasonable math and return prospects. During secular bear markets in particular, this is a deadly, life-changing (for the worse) combination. In the end the investment banks rake in billions while the fund owners suffer the consequences of harmful financial management and advice.
No city has as serious a pension issue as Chicago, reports CNBC’s Scott Cohn. Nationwide, the municipal pension debt ranges from $800 billion-$4 trillion, he adds. Here is a direct video link.