Comments on: Guest Post: The Elephant in the Room? http://www.nakedcapitalism.com/2009/07/guest-post-elephant-in-room.html Sun, 22 Nov 2009 00:52:41 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Hal Horvath http://www.nakedcapitalism.com/2009/07/guest-post-elephant-in-room.html#comment-50546 Hal Horvath Wed, 15 Jul 2009 20:21:28 +0000 http://www.nakedcapitalism.com/2009/07/guest-post-the-elephant-in-the-room/#comment-50546 Just skimming a bit, and speaking very broadly, pensions imply the idea of significant economic growth in order to be sustained.<br /><br />Thus that growth or lack thereof is the only deciding factor for a pension plan. Just skimming a bit, and speaking very broadly, pensions imply the idea of significant economic growth in order to be sustained.

Thus that growth or lack thereof is the only deciding factor for a pension plan.

]]> By: Francois http://www.nakedcapitalism.com/2009/07/guest-post-elephant-in-room.html#comment-50526 Francois Wed, 15 Jul 2009 14:08:42 +0000 http://www.nakedcapitalism.com/2009/07/guest-post-the-elephant-in-the-room/#comment-50526 "everyone is looking to cut corners and profit on the backs of an ever restless working class wondering how they will safely retire without losing their dignity."<br /><br />Restlessness combined with loss of dignity can lead to very vexing and deplorable, err, shall we say "social movements"?<br /><br />These movements can overthrow governments at the polls...and that is the most benign outcome.<br /><br />Perhaps the powers that be should think about the potential for less benign outcomes.b "everyone is looking to cut corners and profit on the backs of an ever restless working class wondering how they will safely retire without losing their dignity."

Restlessness combined with loss of dignity can lead to very vexing and deplorable, err, shall we say "social movements"?

These movements can overthrow governments at the polls…and that is the most benign outcome.

Perhaps the powers that be should think about the potential for less benign outcomes.b

]]> By: scepticus http://www.nakedcapitalism.com/2009/07/guest-post-elephant-in-room.html#comment-50519 scepticus Wed, 15 Jul 2009 11:50:27 +0000 http://www.nakedcapitalism.com/2009/07/guest-post-the-elephant-in-the-room/#comment-50519 There is a long line of elephants queuing to get in the door:<br /><br />- some estimates suggest that the cost of aging populations is such that the costs of the financial crisis to date are only 5% of ongoing losses which must be sustained by 2050 as a result of aging.<br /><br />- ageing populations will turn into falling populations between now and 2030 for most all developed and many developing nations. The associated GDP losses for this reason alone will be vast.<br /><br />-ageing populations will increase propensity to save among the younger consuming classes which will kill demand, while the hump of elderly boomers finally retiring and spending what they have left will still ensure that the overall result is dis-saving. Cost of capital will at or belo zero with no-one wanting to borrow it. There is a long line of elephants queuing to get in the door:

- some estimates suggest that the cost of aging populations is such that the costs of the financial crisis to date are only 5% of ongoing losses which must be sustained by 2050 as a result of aging.

- ageing populations will turn into falling populations between now and 2030 for most all developed and many developing nations. The associated GDP losses for this reason alone will be vast.

-ageing populations will increase propensity to save among the younger consuming classes which will kill demand, while the hump of elderly boomers finally retiring and spending what they have left will still ensure that the overall result is dis-saving. Cost of capital will at or belo zero with no-one wanting to borrow it.

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