What will be interesting to see is what Americans will do once the government agency insuring 44 million American's pension funds significantly depletes its reserves.
"Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks."
"If the auto companies go under, they have huge unfunded liabilities in pension plans that would be passed on to the agency."
We have heard that in 2008, stocks devalued 40% from 1 year ago, and many pension funds took a significant haircut. Right now baby boomers are retiring in droves, and older companies like GM with huge pension fund liabilities may be left without a parent corporation to cover the shortfalls. All of this is not leaving much time for these funds to "recover" their losses in the market. If the stock market collapses 40% lower from here, as I expect it will, these pension funds will need help.
That help is suppose to be Pension Benefit