The Pension Bubble: How The Defaults Will Occur

Experts worry about stock, bond and real estate market excesses. But a bubble is forming that dwarfs them all: in pension plans. Millions of Americans and Canadians who are counting on pension benefits to fund their retirements risk being severely disappointed.

The hard money community has, of course, been aware of this for some time. However in recent years, even the elites have been taking notice.

One such group, the International Forum of the Americas, will be holding its fourth annual pension conference in Montreal next Monday.

There politicians, financiers and monetary policy officials will discuss the declining rates of return in public and private sector pension plans.

The picture they will paint is increasingly grim.

Pension funds, which have been issuing over-optimistic revenue forecasts for years, aren’t going to earn nearly enough money to pay the benefits recipients expect.

Much of this relates to secular stagnation in the economy.

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