United's pension woes: sign of bigger issue(Biggest Default in History?)

[RamboLiberal]

http://www.csmonitor.com/2004/1004/p02s01-usec.html

Despite ongoing negotiations with its unions, United Airlines has told the bankruptcy court that the "likely result" will be a decision to terminate all of its pension plans.
That would precipitate the biggest pension default in history, more twice the size of the Bethlehem Steel Corporation default in 2002.

The move is expected to destabilize the already struggling airline industry, prompting other old-line carriers like Delta to eventually follow suit to maintain competitiveness.

It would also put additional pressure on the Pension Benefit Guaranty Corporation (PBGC,) the federal agency that insures traditional pensions in case companies go belly up. It's already facing more than a $9 billion shortfall. A default by United would saddle it with an additional $8.4 billion in unfunded obligations. If other airlines follow, the PBGC may have to go to Congress and plead for a bailout that some experts say would be bigger than the Savings and Loan debacle of the 1980s.

[Mika]

1. Ready to be drowned in the bathtub yet?

Ship's a goin' down down,
ship's a goin' down.

[Krupskaya]

2. Serves 'em unions right for bein' so greedy!

SARCASM here, folks.

[Sandpiper]

3. Doesn't this make everyone anxious

To privatize Social Security ASAP?

[leftofthedial]

4. this country is going down the tubes

if you are not wealthy, you are shit.

welcome to the third world.

that deregulation bullshit the repukes foisted on us is working real well, isn't it?

not only that, but half the population is delusional fascist enabling ignorant shitstains trying to reimplement the dark ages.

Firs tchance I get, I'm outta here.

[classof56]

5. Wow...I haven't heard it put that bluntly before...

But I do think your point if well-taken. Have been thinking of getting outa here myself, but just wondering...where will I go and what will I live on when they take away my soc security and pension fund? I have been trying to raise awareness of some of my fellow citizens about the coming fascist regime if Bush is "elected". I'm thinkin' they'll have to figure it out for themselves. Meanwhile, I have my passport, and I'm ready to head out to some friendly country when the dark ages arrive. Let us hope it does not come to that and try very hard to...

DEFEAT BUSH!!

[leftofthedial]

6. you still have a pension fund?

whoa! And you don't live in a museum?

I'm amazed! :-) :toast:

I'm doing what I can to defeat the bushgang, but the usurpers after a coup like we had in 2000 rarely give up power quietly.

[saigon68]

7. It will get ugly

And soon