Why are you laughing?
There is a new crisis on the horizon that threatens the solvency of local governments and the recovery of the U.S. economy: teetering public pension funds on the verge of insolvency, with the retirement security of millions of working Americans hanging in the balance.Paterson bequeaths a state pension fund that is $71 billion underfunded to incoming Governor Andrew Cuomo. Nobody knows what 'immediate action' Cuomo has in mind to rescue New York's pension system, but hopefully he's got something up his sleeve besides the 'ol tried and failed 'rob Peter to pay Peter' gimmick.
In 2011, the health of these public funds will take center stage with the very real possibility of significant write-downs in pension asset pools at a time when most funds can ill-afford it. And while these problems were not created in a single year, immediate action will be required to avoid driving our economy deeper into the ditch of recession.
Don't hold your breath though.