contract when the contract is fraudulent. it is fraudulent that we can pay $100,000 pension for 40 or 50 years because the money is not there. it applies an annuity and the money is not there and was never there. quick response? ideas are not fraudulent if both sides cut the contract. there is no contract. that idea doesn t work. quenton, there is no contractial obligation. obligation and contract and provision. call it what you will. there is not a contractial obligation to have a pension fund. there is 401 k. and we have to hear from mark and he s in illinois, that state that is in the worst shape. i think illinois has gone down the right path and i
contractial obligations but rules that they must be funded but not how they are funded . so that s why more states are moving to 401 k plans . how is that a contract? they are contracts. quenton let me finish. in colorado you can get 90 percent. hang on, quenton. it is rude to interrupt even when she doesn t have problems with her voice. let her speak. colorado can get 95 percent of her salary guaranteed and also your health care costs, you don t have to pay any ductibles employees only eight or nine states will have a contractial obligation for pension but not 401 k. morgan should we see tax hikes. as much as a would not like the tax hike.
but we need reforms and great news that the states are reforming. i don t see how that is going to be enough. twost looming threts are retired health care and pension benefits. states had 194 in liabilities and if that was a person they would file bankruptcy. taxes are part of the puzzle. rich, the state with the least amount of money is illinois to pay for future pensions. they decided to raise the taxes and they have a democrat legislature and governor. are they going to continue to raise taxes or is there no end to the game? illinois seems to be going down the wrong path. i find it a sweet irony that the president of the united states used to sit in the illinois legislature. it is a ding. quenton, it is legally and ethically proper to void a
coming in 401 k and existing workers pay more and extend the retirement age or go from an old system to new system. benefits accrue and after that go to the 401 k. quenton new system or raise taxes for the old system. steve may be right. but that is not a crisis menitality you are hearing these days, cast your mind back a couple of years . remember how we paid bonuses to people who essentially destroid the financial system and begin us the recession. theythese are contracts and rule of law matters in this country, you have to honor the pension obligations and that comes down to raising taxes or the state going bankrupt and renegotiating the contract you will raise taxes. the facts are, government accountability office found that most states don t have
take the money and move them out of the flood prone areas and put them in areas that doesn t flood. that makes sense. some cases, flood zones for example, we have government insurance policiless paying wealthy people. john stosil got insurance money from the feds to rebuild on the same spot. again, tornados, you don t know where they will hit. but flood zones two thing to do. building codes, if it is in a flood area. charge realistic insurance rates. realistic insurance rates and popular building clothes. quenton, let the market handle it. i agree there are building code and that is a good idea. that is social engineering and we seem to approve of this one. we ll see more and more as climate change creates them imbalances.