[quote=CA renter][quote=phaster][quote=FlyerInHi][quote=CA renter]For the record, California’s high income tax rate, high fees, etc. are the result of Prop 13. The state lost billions in revenues when Prop 13 passed, so they had to make it up elsewhere.
And since you’re so concerned about taxpayers and the health of state/county/city finances, have you paid back your unearned tax subsidies, yet?[/quote]
You just obviated any argument to repeal prop 13. If the lost billions have been made up, a repeal of prop 13 would amount to a huge tax increase. No way Jose.[/quote]
sigh,… let’s all take another walk down memory lane
[quote=CA renter]
September 4, 2014 – 6:04pm
I don’t get distracted by non-economic issues where politics are concerned. That’s not to say that these issues are unimportant, but that they pale in comparison to economics.
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[quote=CA renter]
October 1, 2014 – 9:23pm
Yes, I’ve been following the pension issue for many, many years (far, far, far longer than you have), and I have also worked with negotiating committees and have done research for public employee unions.
for the record, have to say the inability to recognize basic middle school math concepts and their importance as it relates to managing money, sadly isn’t an isolated case,… seems there is a pandemic of being morally and intellectually bankrupt (i.e. dishonest and dumb) WRT basic finance,… perhaps the root cause is some kind of political self interest???
having said my piece, now let’s go back and review (yet again) the basic math concepts which are key to understanding the local pension portfolio “mismanagement”
for three decades plus, the local public pension portfolio custodians (i.e. politicians) have allowed giving away a 13th pension payment (off balance sheet),… basically this is akin to a 13th mortgage payment on a property (which shortens the pay off period and decreases the over-all interest paid), BUT in this case things work in reverse,… in other words the pension debt obligation will increase over time
compounding this basic middle school math “error” is public employ leadership (i.e. public pension recipients) who see no problem w/ not requiring fully funding the portfolio,… this action basically is akin to only paying a “minimum credit card payment” but its important to note that things here are happening on a SUPER SIZED scale!!!
AND let’s not forget we are where we are because those responsible for causing this money management mess are basically morally and intellectually challenged (i.e. dishonest and dumb)
bottom line,… given the “California rule” which implies the tax payers are the designated financial backstop for this whole mess,… means eventually there are some serious consequences for local residents AND if the problem(s) is widespread perhaps it might have serious consequences for civilization as a whole,…
PS one last general observation,… the background knowledge needed to model something as complex/chaotic as climate change or the economy, requires deep knowledge of various fields of study along w/ a basic understanding of how things interact,… what I find ironic is more often than not is politicians and various activists who claim leadership roles,… have in fact the least background knowledge that is required to understand the big picture
You didn’t address any of the issues listed in my post, including the fact that the government (federal, state, and local) backs many different interest groups, not just their employees. Why aren’t you concerned about these groups? What about that juicy taxpayer subsidy, worth thousands of dollars, that you personally receive every year? Why no mention of that?
FWIW, I also disagree with the “13th check,” but this is not what’s causing the problems with the pension systems. San Diego has its own pension fund, so you shouldn’t extend this argument to other systems that do not have this additional payment option. For the record, I strongly oppose pension spiking, and have always done so.
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ah, some progress,… you’ve finally acknowledged the local three plus decade SOP of a 13th pension payment,…
now as to why I made no mention of the people who will be adversely affected, it isn’t because I lack any concern for people,… rather doing a realistic analysis of how a public pension portfolio is managed ONLY involves looking at the math
as I see things,… your basically a dumb$hit hypocrite that is in denial that you had a hand putting all of us (i.e. harvey, flu, your own family, etc.) in the position of increased danger,… AND the reason I say this is because on one hand you specifically mention economics should trump politics
[quote=CA renter]
September 4, 2014 – 6:04pm
I don’t get distracted by non-economic issues where politics are concerned. That’s not to say that these issues are unimportant, but that they pale in comparison to economics.
[/quote]
and on the other had you’ve clearly demonstrated you have little or no ability to grasp basic middle school math (which is needed to lessen the probability of failure),… ALSO there are various indications that you don’t grasp the amount of B$ w/ in the ratings system for muni bonds,…
[quote=phaster]
October 22, 2016 – 8:30am
[quote=CA renter]
October 9, 2016 – 1:07am
BTW, you’re not educating or informing anyone of anything. The pension issue was beaten to death LONG before you ever came into the picture.
[/quote]
to give you some insight as to how frame the issue, you’ll need to be made aware of a topic in math called “one way functions”
essential a one way function is a calculation that is easy in one direction BUT the opposite is not the case (FYI the practical application of this math is encryption),… anyway as I see things the responsible thing to do is always check the math first, then make life style decisions that take into account environmental and social factors,… perhaps you have hear the term triple-bottomline
by looking the math first then taking into account the environmental and social aspects, this greatly improves the odd of the system being sustainable
the irresponsible way to do things is, ignore the math from the beginning (as is the case w/ the way public pensions are structured and operated),… the result in this case is, a much much much greater likely hood of failure!
or another way of thinking about the issue is the difficulty of trying to go backwards on a one way math function
to illustrate the issue in terms you might relate to is,… lets suppose the resident hacker and resident investment genius (i.e. “harvey” and “flu”) decide to collaborate and start an investment club
lets also suppose these two piggs use the same investment strategy as the local pension fund,… where they keep things off balance sheet, don’t take into account inflows or market-returns AND basically just concern themselves on collecting pay offs for themselves and their kin,…
bottom line when OUTFLOW(s) > INFLOW(s) + MARKET RETURN, eventually the scheme goes bust!
in this hypothetical scenario, next lets say we are at a point in time where “harvey” and “flu” are having trouble keeping their ponzi like math scheme going,… so they come up w/ a plan try and get you and your family to pick up the tab for their idiotic investment plan that had no basis reality from the onset, then ignored any sense of basic financial responsibility for three decades,…
would you and your kids bail out these two idiots AND put your own future at risk,… pretty sure you would say hell no
well the prop 13 split roll proposal, as envisioned by various progressive groups,… basically is akin to you being asked to bail out out harvey and flu after they mismanaged a portfolio for 30+ years
there is an old joke about a stock broker that jumps out a window on the 40th floor,… on the way down for 39 floors I can be 100% certain that its not the fall that is going to kill him,… its that sudden stop at the end that is hard to survive
like it or not eventually you and you kids will have to contend w/ consequences of corrupt and mismanaged finances on the whole system,… all because DISHONEST and DUMB individuals ignored the existence of basic math from the onset and set things in motion
