Tuesday, August 24, 2010

The American Spectator : AmSpecBlog : Biden's Low Bar for GM

The American Spectator : AmSpecBlog : Biden's Low Bar for GM: "

*GM has $100 billion in unfunded, long-term liabilities in its pension fund.
*Currently there are six retirees poised to draw pensions for every current worker at GM. Roughly speaking, this means that 87,500 workers must support 531,500 pensioners.
*The amount of the unfunded pension liability is calculated assuming a long-term rate of return of 8.5%, an extremely optimistic number bordering on the absurd.. In contrast, most analysts would assume a rate equal to Treasury bonds for such assets, closer to 2.6%."

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