The problems of many state pension funds are well documented here and elsewhere. However, how funds got into trouble is less well-known. We worry about accountability in the financial crisis while at the same time not a peep is heard about the gross mismanagement at the state level putting their citizens at far more direct financial risk in terms of taxes and lost services.
Here is a must read from Bloomberg.com
Do you know what liabilities lurk hidden in your state pension plans?
QUINNSCOMMENTARY 
All of our current fiscal problems whether it is over promised public pensions, financial meltdowns from this economic bubble or that, or our unsustainable level of national debt, all have the same root causes which are the misalignment of incentives and the lack of meaningful regulation. Any system needs regulation to operate properly. The problem with regulation comes from the regulators not recognizing the misaligned incentives or from those who stand to gain from an unregulated system convincing legislators that regulation is too burdensome, unnecessary or an impedance to business . I am not advocating more government interference, just that regulation be meaningful and address the root causes of the problems.
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Interesting points. All regulation is not bad, just as unregulated free markets are not always good.
Dick
Richard D Quinn Editor
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