Afternoon Links 10-13
The Pension Crisis (WaPo) “After losing about $1 trillion in the markets, state and local governments are facing a devil’s choice: Either slash retirement benefits or pursue high-return investments that come with high risk.” If history is any guide, they’ll reach for yield and the consequences will not be good.
Kohn says rates will stay low for an “extended period” (Bloomberg) I wonder: The housing bubble was a direct result of a policy of too low rates for an extended period. Do supporters of current Fed policy think things will happen differently this time? If so, why?
“New” Michael Jackson single a “mistake” (Reuters) An obscure Puerto Rican singer just won the lottery…