Warren Buffett was at his prophetic best when he wrote in Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)’s 2013 Annual Report:
“Local and state financial problems are accelerating, in large part because public entities promised pensions they couldn’t afford. Citizens and public officials typically under-appreciated the gigantic financial tapeworm that was born when promises were made that conflicted with a willingness to fund them. Unfortunately, pension mathematics today remain a mystery to most Americans… During the next decade, you will read a lot of news – bad news – about public pension plans.”
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