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Reuters Washington Correspondent Daniel Indiviglio on the government using funding from government-backed pensions to help keep student loan interest ...
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VW were celebrating independence watching an independent independently stealing from an old and idiots are beyond.
They heard about lawmakers extending the student loan rates over the July 4 holiday we're just finding out now.
How -- paid -- -- they're taking billions from government backed pensions to do it.
Reuters columnist and -- -- Leo on the economy picks says all of this could be costing us so what's going on here it sounds like a shell game.
-- and explain kind of what's happening here as you mentioned this transportation bill seems pretty harmless but some of the stuff -- and here's a promise also.
First of all the fourteen billion dollar hole they had a front fourteen billion dollar spending just for this transportation part.
But then congress -- another six billion dollar subsidy to keep student loan interest rates low at 3.4 percent.
So that's twenty billion dollars right that they kind of need to search uncle Sam's couch cushions the fine -- So had to do it.
They -- the pension fund the pension guarantee fund.
As you mentioned the government backs a number of private sector pensions and and this is kind of what it relies on here.
About might be okay if it could kind of afford to do that but actually this fund's net deficit is about 26 billion dollars according to its 2000 -- report.
So it doesn't have the money.
And and -- it's kind of particularly insidious is the ways in which they need to -- so first.
Other governments hiking pension guarantee fees the fees that these corporations are paying Fortis insurance.
And I gotta be great if somebody was actually go into this fund which is underfunded but it's not it's going to pay for transportation student loans that's about half of the twenty billion.
Now the other half is what you really see congress is evil genius or what's going on here it is there allow an accounting change.
To that corporations can contribute less money to the pension funds but still have the same expected payouts.
Now a lot together and at the bottom line is this this whole this -- its payout system.
Really isn't worth the paper it's printed on or or paid for by a visit targets and measures within the -- itself.
Right well I yes it's been again look there's just let tying to smash this is -- ten years' worth of revenue to fund a year -- worth spending right that's not a problem.
But -- really kind of crazy part is by allowing companies to -- should be left the pensions.
That means they're -- off your taxes which means the government gets more money taxes so that's the government is this is is kind of creating risk.
As it in -- way to get more revenue it's just it's crazy.
-- -- -- -- -- -- -- The soon we'll do we'll bring it back here is people discovered Daniel -- well.
