JPM Privately Panicking Over Muni’s: Unfunded Pension Liabilities Now $4 TRILLION!

June 19, 2012 By 12 Comments

JP Morgan has released a confidential report to important clients regarding their concern over the ‘huge ticking time-bombs’ of the unfunded pension crisis, which JPM states is likely $4 TRILLION.
JPM states that ‘many of the real liabilities are located “off balance sheet,” hidden from the public’s eye‘.

Now who do you supposed assisted towns and cities across America in hiding their true liabilities off the balance sheets using complex derivatives?
That’s right, banks like JPM and The Vampire Squid, who infamously assisted Greece in hiding their true debt from the EU.
Meredith Whitney will be proven 100% correct in due time.

While the Senate Banking Committee last week spun its wheels trying to get JP Morgan chief Jamie Dimon to admit to something nefarious during testimony about his “London Whale” trading loss, executives at the big bank were concealing a far bigger scandal…

A “strictly confidential” report JP Morgan issued last year describes in straightforward, frightening detail how underfunded pensions are huge ticking time-bombs for many of the nation’s big cities and states.

The scandal isn’t simply that most public officials are misleading the public about the enormity of the problem and what steps must be taken to address the matter. As the Morgan report notes, many of the real liabilities are located “off balance sheet,” hidden from the public’s eye, and lax accounting standards let cities and states minimize their enormity.

It’s also that JP Morgan itself kept the report’s findings a secret except for a few big clients, mostly hedge funds and large institutional investors, who got the inside tip on which states and cities are most likely to default on their debt as their pension liabilities fester.

Yes: Default is a very real possibility, because the solutions are far from easy.

Read more:


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Comments

  1. Avatar of Gajervis Gajervis says:
    June 19, 2012 at 11:21 AM

    my pension is physical silver

  2. Avatar of NetRanger808 NetRanger808 says:
    June 19, 2012 at 11:33 AM

    4 Trillion. I see the wife and I made a great decisions moving away from 401k and moving into PM.

  3. Avatar of AGXIIK AGXIIK says:
    June 19, 2012 at 11:50 AM

    This tsunami of state debt makes the 47 states with underfunded pensions and liabilities   much like the PIIGS   When  California and Illinois, New York and New Jersey, to mention a few of the worst offenders,  hit the wall, can’t print money to balance the books and are unable to pay either the pensioneers or their embedded Mooch Class,  there will be blood in the streets.  Literally. 

     The main object of federal laws such as NDAA and NBRP  allows for expropriation of individual assets, wherever and in whatever form they take, including the trillions in private pension funds.  These funds will  be   specifically designated to help their friends in the  capitals of bankrupt states.  The Fed and treasury can monetize the national debt  for years into the future but states can’t print. Like the countries of Europe that are bankrupt at both  a central government as well as a banking basis, our states will  also require multi trillion dollar bailouts.  And like the ECB, EFSF and ESM (an uber statist banking cabal) our central government will rape the average tax payer, the few of us who are left, of anything that bail out the states.  This is the only way the governments know how to preserve their power and money  paradigms; using  ruthless control couppled with  fiscal mismanagement  that have used to buy votes to continue this paradigm.  I use the word ruthless  for one reason. If you refuse to pay whatever extortionate tax set by a state government you will lose our freedom and your assets.   

     Monetary power begets police and military power hence the reason we see an absolute IRON CURTAIN of currency controls falling in place* around this country while the local and regional police establishments are creating fusion centers to focus armed forces at all levels to enforce regulations, laws and expropriation of citizen assets.  Given enough time the STATE will destroy its citizenry with taxes and regulations.  We are either at or beyond the tipping point.  The first large state that goes bankrupt will force the situation to the breaking point.  I can scarcely imagine what will happen. Being forewarned allows us to do the best we can to protect ourselves and our assets. 

    * no other first or second world country makes is as difficult for  its citizens to establish bank accounts in other countries as the US  The situation is so bad that  few offshore investment centers or banks will accept US accounts any more

  4. Avatar of Not Sure Not Sure says:
    June 19, 2012 at 11:53 AM

    If the recent “whale” losses are the “tempest in a teapot”, the pension liabilities issue is the “typhoon in a dutch oven.” 

    (Oh, and if you like my comment, don’t coin me. Coin 427 or silverbullion. I’m just here ’cause I don’t have anything better to do. ;)  )
  5. Avatar of silverbullion silverbullion says:
    June 19, 2012 at 12:13 PM

    Not Sure I am not sure what you’re aiming at, with:

    “Oh, and if you like my comment, don’t coin me. Coin 427 or silverbullion“

    But, I can assure you that I’ve coined more than one of your previous comments, because I really liked it. So you’re latest comment is really uncalled for. Yes, if you believe the shoe fits, then wear it, but don’t make it my problem by making false assumptions… I am sure I don’t need to remind you what they say about assumptions. Anyhow, peace… I am just saying.

  6. Avatar of Silver Dollar Silver Dollar says:
    June 19, 2012 at 12:21 PM

    JP Morgan should watch Joe Dirt. A Dude can only stick his head in the gators mouth soooooooo many times, then Murphys Law kicks in………

    I`m just saying

  7. Avatar of silverbullion silverbullion says:
    June 19, 2012 at 12:27 PM

    lol Silver Dollar

  8. Avatar of Not Sure Not Sure says:
    June 19, 2012 at 12:34 PM

    SB,

    Peace to you, too. I’m just playing with you guys. You seem to have a good sense of humor. Really, I don’t care about the coins. That’s what I love about freedom of speech and freedom of expression…..I really don’t have to care what anyone thinks of me or my opinions. I have a voice (keyboard) so I let it be heard. It is the American way. 
  9. Avatar of silverbullion silverbullion says:
    June 19, 2012 at 12:41 PM

    Not Sure Amen!

  10. Avatar of ich1baN ich1baN says:
    June 19, 2012 at 1:04 PM

    I’ve often had this debate with people trying to warn of the coming state fiscal cliff that no one seems to know anything about b/c they hide it through accounting gimmicks and giggles. California will be the 1st state to ask for a major bailout which will lead to major cities across the nation in need of cash from the Fed who will be forced to print. Oh and as a by-product your silver and gold holdings will appreciate quite noticeably from the doctor’s prescription of Ctrl-P spin-shift Alt-F9. 

    I do agree that the quagmire the world is in, it will be interesting to see the money pour into gold and silver as safe vehicles. There is a good article written by Casey Research that shows info graphics of the lack of money invested in gold and particularly in silver stocks and bullion. If 1% of that money were to move from hedge funds, pensioners, 401ks, asset managers, equities, bonds….. you would see a meteoric rise in gold and a stratospheric rise in silver. This Casino game created by the Fed really does get more interesting as time goes on. 
    Since we know the rules of the Casino and are not tricked into playing roulette but actually buy up the real valuable commodities that exist outside of the Casino’s realm, it is only a matter of time before the roulette and slot players wake up to their treacherous misery and find out they have been duped all along and the massive “mania phase” will begin. I give it 2 years.
  11. Avatar of Marchas45 Marchas45 says:
    June 19, 2012 at 5:49 PM

    Municipal Bonds Crashing, Retirement Plans Crashing, Local Government Defaults, Dollar Crashing, Next the Derivatives Crashing. What The Hell, Why Isn’t Silver Skyrocketing? LMAO

  12. Avatar of UglyDog UglyDog says:
    June 21, 2012 at 5:58 PM

    Marchas45…Paper silver is being sold short in massive quantities by parties that accept the losses as part of the game they are playing.  This excess of ‘paper’ silver drives the price down.  Additionally,  JPM and HSBC are capable of manipulating the silver price through computerized trading shenanigans i.e. they hit all the bids or they use high frequency techniques that manipulate the system by moving in and out of trading positions in literal nanoseconds.

    There is only so much physical silver out there and at some point it will be impossible to paper over the silver market and the silver market will become a cash market, like the way you buy milk in the store.  When the break occurs it will create a whip saw move to the upside as the shorts are forced to cover.

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