Underwater Mortgage? Call 1-888-995-HOPE

Clearly the government needs to do more to help citizens in dire financial straits. An information hotline is a good bit short of a serious plan, such as the one described in my last blog post; Martin Feldstein and Gavyn Davies have also weighed in recently. As far as this story goes, Mandelman’s blog post […]

U.S. Housing – Measures to Prevent an Economic Cancer

Laurie Goodman is perhaps the best Real Estate / MBS analyst out there, with both buy-side and sell-side experience. Her recent testimony to Congress is worth reading and contains lots of good charts, sound reasoning, and a solid idea on what needs to be done – not to make housing what it was before the […]

Looking Ahead – Who’s on the FOMC in 2012?

Nouriel and other clear-thinking economists often talk about the Three Stooges at the Fed, Kocherlakota, Fisher, and Plosser (Minnesota, Dallas, Philadelphia), who have probably hampered monetary policy this year. Kockerlakota and Plosser are good economists, but with degrees from Chicago, their intellectual and philosophical perspective renders them incapable of understanding the U.S.’s economic situation, including […]

Response to Randy Wray’s Biggest Commodity Bubble of All Time

L. Randall:  You present a compelling argument for a commodity bubble. Yes, the financialization of commodities has truly played a role in rising global commodity prices via the many new ETPs (exchange traded products) backed by either  commodity futures or physicals, as well as indices and other forms of  investible instruments. Yet I wish to […]

The (Debt) Hangover – Part II

The summer of 2011 has taken developed and overdeveloped economies on a rough ride – and it has taken its toll on consumers, investors, and politicians.  With talk of a double dip recession in the United States and a break-up of the eurozone, it seems like a second—possibly larger—financial and economic storm is brewing.  US […]

RGE 360

Here is this week’s RGE 360, our Friday morning look at the week ahead in the global economy and our weekly review of the best recent content from Roubini.com. Friday, May 13 U.S. releases April consumer price index. (U.S. Core CPI Up Less Than Expected in March: Only Transitory Gains in 2011?) Eurozone releases GDP […]

RGE 360

RGE 360

Here is this week’s RGE 360, our Friday morning look at the week ahead in the global economy and our weekly review of the best recent content from Roubini.com.

RGE 360

Here is this week’s RGE 360, our Friday morning look at the week ahead in the global economy and our weekly review of the best recent content from Roubini.com.

Friday, April 29, 2011

Funded vs. Unfunded

The Economist recently had an in-depth special report on pensions, but one confusing statement stood out:

In a sense, it does not matter how the benefits are paid for. If unfunded, they come from workers’ taxes; if funded, they come from investment income.”  

What did they mean by it, and are they making sense?

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