Is California the next Greece?
Are California state pension funds going broke, as articles about the recent Stanford study suggests there is a half a trillion dollar shortfall? The point is not to get caught up in the pension fund comments that things are not really that bad and high projected return rates are still reasonable and even appropriate.
Someone has to pay for those shortfalls directly or indirectly, unless states and politicians repudiate past commitments they made? And that is unlikely, but not impossible. Cities and even states have gone bankrupt. That is why there are bankruptcy codes to handle those situations.
What about your state? How soon will someone shine a light on your states unfunded off balance sheet liabilities and obligations? When that happens, how much impact will there be on your business?
Getting closer to home, which unfunded liabilities, commitments, or under accrued obligations does your business have? Is it time to get real and move to a fortress balance sheet mentality?
Regardless of your political viewpoint, consider the article that Google sent me on one of my daily searches. For another perspective on how soon these state and local cash shortfalls will explode requiring attention, this article suggests that California has a Worse credit rating than Greece, as California struggles to close a projected $42 billion budget gap—in a recession and with declining state revenues.
blog.survivalstation.org/debt-crisis-in-paradise-50893.html?utm_source=twitterfeed&utm_medium=twitter />
Someone has to pay for those shortfalls directly or indirectly, unless states and politicians repudiate past commitments they made? And that is unlikely, but not impossible. Cities and even states have gone bankrupt. That is why there are bankruptcy codes to handle those situations.
What about your state? How soon will someone shine a light on your states unfunded off balance sheet liabilities and obligations? When that happens, how much impact will there be on your business?
Getting closer to home, which unfunded liabilities, commitments, or under accrued obligations does your business have? Is it time to get real and move to a fortress balance sheet mentality?
Regardless of your political viewpoint, consider the article that Google sent me on one of my daily searches. For another perspective on how soon these state and local cash shortfalls will explode requiring attention, this article suggests that California has a Worse credit rating than Greece, as California struggles to close a projected $42 billion budget gap—in a recession and with declining state revenues.
blog.survivalstation.org/debt-crisis-in-paradise-50893.html?utm_source=twitterfeed&utm_medium=twitter
Posted by FiscalDoctor com at 4/7/2010 12:07 PM 
Categories: contingency planning, business growth, Enterprise Risk Management, risk, risks, corporate governance, due diligence, taxes, inflation, ERM, Profitability
Tags: politicians business growth Enterprise Risk Management profitability risk contingency planning risks due diligence taxes inflation ERM corporate governance
Categories: contingency planning, business growth, Enterprise Risk Management, risk, risks, corporate governance, due diligence, taxes, inflation, ERM, Profitability
Tags: politicians business growth Enterprise Risk Management profitability risk contingency planning risks due diligence taxes inflation ERM corporate governance
Nice and interesting post. keep it up.
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