“… Robert Benmosche, chief executive of the recently bailed-out and largely government-owned American International Group, told Bloomberg from his seaside villa that he thinks the eurozone debt crisis will push the retirement age in the region way up.”Retirement ages will have to move to 70, 80 years old,” he said. “That would make pensions, medical services more affordable. They will keep people working longer and will take that burden off of the youth…”
Pension plans are based on 8% annual growth forever. What happens to these plans in a zero-interest rate world as the global economy and stock markets contract?
I’m afraid it’s time for an intervention.
I don’t enjoy being the bearer of difficult news, but now that Europe has stumbled drunkenly into the pool and been “rescued,” it’s once again tearfully blubbering that this time it’s all going to change, and a new prime minister in each dysfunctional, insolvent EU nation is going to make the pain and the addiction all go away.It’s time we face the reality that Europe and the U.S. are full-blown financial alcoholics, addicted to illusion and debt. And what do they turn to as “solutions”? The very sources of their pain: illusory “fixes” and more debt. Have you ever seen a global market as dependent on rumors of “magical fixes” for its “resilience” as this one?