Warren Buffett was on CNBC this week for two hours where he addressed a viewer question on the the pension crisis with much perspicacity:
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Full interview with the pension part starting at 49:40 –
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28 Feb
Union County Watchdog
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- In Memorium
- UC Budget 2024: Open Space Tax Theft
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Burypensions Blog 
Posted by NJ2AZ on February 28, 2019 at 5:09 pm
his warning about relocation is so on the money.
states are gonna try and get that money…why would anyone move into that??
Posted by Tough Love on February 28, 2019 at 5:18 pm
NJ’s ONLY salvation is RENEGING ….. to be very specific, NOT PAYING ….. 50+% (75% for Police) of the ludicrously excessive Public Sector pensions (and ALL all retiree healthcare subsidies) BOUGHT from our Elected Officials with Public Sector Union campaign contributions.
Posted by Tough Love on February 28, 2019 at 6:27 pm
Per the TIAA online Annuity calculator one would have to put forth $1.981 Million to buy the Pension TYPICAL of new NJ Police retirees (retirement at age 52 with 25 years of service and with a $100K annual pension).
Please ….. someone, anyone …… tell me what (normal) Private Sector worker has accumulated $1.981 Million in tax-deferred saving by age 52.
And …………… with the Officer’s own contributions (INCLUDING all the investment earnings thereon) rarely accumulating to a sum sufficient to buy more than 10% to 15% of the total cost (the $1.981 Million) of that pension.
Taxpayer Funding or Paying such a pension is patently absurd …………. RENEGE !
Posted by Bob Ross on February 28, 2019 at 6:59 pm
Maybe to some extent but a lot of other factors will come into play as well. Does he think South Dakota or Wisconsin are suddenly going to become corporate hubs just because they don’t have much unfunded pension liability? Dream on…
Posted by geo8rge on March 1, 2019 at 12:53 am
“South Dakota or Wisconsin are suddenly going to become corporate hubs”
North Carolina:
Charlotte NC. American Airlines hub. Amtrak to DC. Future home of oldline NJ company Honeywell.
Raleigh Durham NC. Home of SAS Labs
Reconnaissance shows NC has similar amenities to NJ like Costco, Universities with sports teams, Gay marriage, Ethiopian Restaurants …
2010 census listed NC as having more people than NJ for the first time since 1900.
But there is hope: https://en.wikipedia.org/wiki/2018_North_Carolina_teachers%27_strike
Posted by Coco on February 28, 2019 at 7:22 pm
I saved 1.3 million at age 50. It can be done but most people particularly the civilian population just aren’t smart enough,driven enough and can’t give up all the “necessities” of life. Civilians love there fancy cars,Gucci bags,new Iphones,expensive vacations,large homes they can’t pay off. No discipline at all.
Posted by geo8rge on March 1, 2019 at 7:30 am
FWIW, Buffett isn’t speaking to 99.999% of the population, he is speaking to his friends who make corporate relocation decisions.
Posted by geo8rge on March 1, 2019 at 8:19 am
“Civilians love there fancy cars,Gucci bags,new Iphones,expensive vacations,large homes they can’t pay off.”
BTW,
Warren Buffett’s suits are made by a Chinese woman who launched an empire from one sewing machine
“It’s a story that should inspire people in China and inspire people around the world.”
https://www.cnbc.com/2017/02/27/warren-buffett-only-wears-suits-made-by-a-chinese-entrepreneur.html
He used to wear Zegna exclusively if I remember right. Zegna has a presence in NJ upscale premium outlet type malls so this is another blow to NJ. Poor NJ kids show up for interviews in Zegna just to look like hicks. Before that, he probably wore Hart Schaffner Marx, his fashion change foreshadowed the end of that brand. I think you can still get Hickey Freeman suits. Interestingly both brands are now made to measure, which means they are probably all made by Buffett’s tailor in China. So NJ kids, consider Grand Pa type brands in men’s suits.
But my point is it is not ‘civilians’ that are the problem NJ has, it is about 10,000 people in the US that make corporate relocation decisions and they like their Gucci and don’t buy at the mall, even the premium outlet mall. BTW, did anyone notice the spikes Becky Quick was wearing?
Let’s Buffet’s friends do shop at the American Dream Mall, none of those in North Carolina.
Posted by stanley on March 1, 2019 at 6:31 am
“most people particularly the civilian population just aren’t smart enough,driven enough and can’t give up all the “necessities” of life.”
I doubt the quality of your (so-called) analysis. There are indeed some poor balance sheets among the general population, but I would be surprised to learn that they are substantially different from public employee balance sheets. And, remember the caution of counting winnings while still at the table. And recall again the retired Pomona police sergeant who couldn’t make the minimum payments on his cards from his $114K annual pension. Yeah, he took up bank robbery to supplement his pension payments. It remains to be seen how this all plays out, but I suspect that there will be enough black eyes and bloody noses for all to get their fair share.
Posted by Coco on March 1, 2019 at 7:12 am
Stanley- When I speak of civilian population I mean anyone who isn’t military or police. Regular public workers are no better than civilians. Possibly worse. This country is mired in mediocrity. Laziness, obesity,dishonesty and lack of morals. The Pomana Sgt. you reference lost his moral compass. Obviously he was involved in gambling,drugs or escorts. He forgot his place and bacame a civilian. At the end of the day regardless of what happens pension fund,I’ll be just fine.
Posted by geo8rge on March 1, 2019 at 10:04 am
“This country is mired in mediocrity. ” Maybe only NJ and the expanding rust belt. The NY NJ PA of Thomas Edison has basically died and moved to California.
Posted by Coco on March 1, 2019 at 10:12 am
Geo- Go to Marine Boot Camp and you will have a clear understanding of what I am talking about. The civilian population is pitiful.
Posted by Tough Love on March 1, 2019 at 4:11 pm
I’m guessing that you are of the mindset that the Military (not Civilians) should be in charge of America’s government.
Scary dude !
Posted by geo8rge on March 1, 2019 at 4:28 pm
“The civilian population is pitiful.” Then the pension schemes have to fail. In particular, according to your observation, the NJEA did not produce people capable of supporting the teacher’s pension scheme.
Posted by Coco on March 1, 2019 at 5:18 pm
TL- If this country was run by the Marine’s 99% of our nations problems would be resolved. Instead we let people like you run things and you see the results. By all means let the civilians continue to run the country. It’s working so well.
Posted by Coco on March 1, 2019 at 5:21 pm
Geo- I have no idea who runs the NJEA. If they are civilians they are garbage. All you need to know in life.
Posted by Tough Love on March 1, 2019 at 5:23 pm
Coco,
If this country were run by Marines, we would become a dictatorship* in no time. That’s why the “Military” must NEVER be “in charge”.
* how has THAT worked out ……. all over the globe ?
Posted by Tough Love on March 1, 2019 at 5:27 pm
Quoting Coco …………..
“I have no idea who runs the NJEA. If they are civilians they are garbage. All you need to know in life.”
You’ve told us that you are in law enforcement. Please share your mindset with your town’s leadership. Hopefully they’ll corral you from the damage you might set loose ………… and CERTAINLY not promote you in leadership position where your scary mindset might spread.
Posted by Anonymous on March 1, 2019 at 2:38 pm
“At the end of the day regardless of what happens pension fund,I’ll be just fine.”
Financial trends go in long cycles, and if you stay with what worked for the last generation, I’ll give you about 2 to 1 that you get your head handed to you. I worked with a guy a few years older than I who wouldn’t touch equities with a 10 ft pole. The type of market that we are heading into will produce that type of thinking again give or take 10–15 years.
Moving ahead, what worked won’t work and what didn’t work will work unless we go complete Venezuela.