Allpar Forums banner

21 - 26 of 26 Posts

·
Active Jeeper
Joined
·
31,129 Posts
Erik Latranyi said:
Depending on the party in power, the VEBA may still be "bailed out" by taxpayers......as has been done for many other retirement plans.
Yes, which is what I said, in not so direct terms. Federal law, regardless of party, mandates retirement fund protection, the plans are federally protected.
Part of the focus of the " structured" bankruptcy, was to protect the taxpayers from an even larger loss, should the VEBA fail. The pensions are actually still in jeopardy, under the current funding methods. There are many fewer workers paying into the fund, than there are retirees.
 

·
Registered
Joined
·
1,230 Posts
The Mad Duck said:
Health Care Costs ????

I Don't Think So.

TMD
Sorry, I'm not American, don't know how the rules work there, but wouldn't the government have had to assume some responsibility if the corporation was unable to fund the retiree benefits? (including healthcare?)
 

·
Active Jeeper
Joined
·
31,129 Posts
jimboy said:
Sorry, I'm not American, don't know how the rules work there, but wouldn't the government have had to assume some responsibility if the corporation was unable to fund the retiree benefits? (including healthcare?)
Not yet, federal protection extends to retirements accounts. The health care laws are still evolving.
 

·
Registered
Joined
·
4,121 Posts
jimboy said:
Sorry, I'm not American, don't know how the rules work there, but wouldn't the government have had to assume some responsibility if the corporation was unable to fund the retiree benefits? (including healthcare?)
I am not sure. I am not an MBA type, so I don't know. One thing is for sure, if they (the auto induustry as a whole) failed, whether or not there was direct gov't liability, or not, there would for sure have been truly massive (mind blowingly massive), indirect, short term, long term, and very long term, costs to the gov't. Which means the costs would in turn be passed to taxpayers. Whether or not Joe and Jane average know it, the auto bail outs (and the Bank bail outs) were incredibly successful. They are NOT without their caveats, though. DId GM learn its lesson? Will GM do the hard work, and straighten itself out? Is GM, and the US auto industry doomed to repeat this whole stupid thing over again, and if so how soon?

Same goes for the bankers.
 

·
Administrator
Joined
·
35,982 Posts
I have friends who are crying for the bond-holders. I don't give a fig about the bond-holders, by the time of the actual bankruptcies, the legit ones had almost entirely sold out, and the speculators -- yes, that includes Indiana's pension fund, run by a man who put politics ahead of his state's welfare -- were the proud holders of the debt, purchased at 10-20 cents on the dollar.

Y'know, we talk about 40,000 to 100,000 people (at least) out of work ...

... we lose the humanity. A single dog gets killed on the street, everyone cries. A hundred thousand people lose their homes, their savings, their livelihood, most of their possessions, it seems all the tear ducts dry up. It's too big and we blame them anyway, how dare they not plan ahead, and how dare they make a decent living before that? They should be grateful they had a job once, with benefits and everything.

We all pay the medical care of those who are destitute and ill, in terms of emergency room write-offs. However ... for all their whining about losing money, it seems the average hospital is making huge profits whether they're "non profit" or not, if the recent Time investigation was accurate. But the point is that the money comes from other patients.

With a hundred thousand people otu of work, we'd have a collapse of the hospitals and banks...
 
21 - 26 of 26 Posts
Top