Wednesday, November 12, 2008


It's been awhile, I hardly know where to start. There are so many important subjects that we need to address. The other day a good friend, Bob Fria sent me an editorial he wrote that I agree with and is right on the money. Please read:

"Take a hard look at bankrupt company retiree pension costs for the PBGC (Pension Benefit Guarantee Corp.)

General Motors alone has 500,000 retirees on the rolls. Pension costs transferred to the PBGC, by law, would absolutely bankrupt the PBGC coffers, which is already stretched to the limits. The PBGC is funded in full by congress, to absorb B-K company pension obligations. With current liabilities, it will be itself out of funds within a few years. In addition to all the new bankruptcies which will occur under this economy nationwide, the PBGC will be beyond its capabilities next year. Adding auto manufacturer liabilities will become a MAJOR congressional obligation with overwhelming tax payer consequences over several hundred billions of dollars, a cost surely to exceed any investment today in the industry. It is incumbent on the Government not to allow any of the big three to enter bankruptcy, for this reason alone.

I speak from experience. I am a retired United Airlines Captain now receiving severly reduced pension payments from the PBGC after UA entered bankruptcy several years ago. The United problem alone nearly caused insolvency for the PBGC."