Monday Sept 20, 2010
Mish reports that pension plans are massively underfunded. There was a front page article in the WSJ this weekend saying the same thing. This is a ticking time bomb that is not being addressed. the WSJ article pointed out that plans are still using wildly optimistic return assumptions of 8%. The stock market went returned zilch in the last year and over the last ten years.
We study pension accounting in Intermediate II. We will be posting more examples this semester.
Professor Elam 
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