Monday April 23, 2012 7:02 AM CST
Off balance sheet unfunded liabilities continue to mount. Here is a story on how Kansas City is having to cover revenue shortfalls in the KC Power nad Light Development downtown.
Heard on the Street reports on the Multi Headed Pension Monster.Here multiple companies promise to fund pensions for various workers. A failure of one company means the others have to make up the difference. THe article suggests that Safeway is already $7.1 B short of its requirements, more than its market capitalization. Safeway of course claims the liability is only $1.88 B. The difference is the assumptions one makes about how much the fund will earn before required payouts begin.
The smart money bet of course is that Safeway is dead wrong, in the same way GM was wrong about its liabilities.
Meredith Whitney is slowly being proven right on her assertion of eventual widespread municipal and corporate debt wores.
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