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View Diary: Bwahahahahahaha! American Airlines and Bain Capital. (282 comments)

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  •  As Painful As It Is, Thanks bbrown (2+ / 0-)
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    bbrown8370, sargoth

    That was a very frank and enlightening statement about how pensions are funded. It's interesting to see how pensions provide almost the same benefits to the beneficiaries as do 401k's. They are both subject to the ebb and flow of the markets, but the 401k contribution is voluntary, needs to be managed by the enrollee, and is not a guaranteed value because there's no pool of newer employee contributions to use to pay off current obligations. The difficulty of shedding pensions sounds like the problems with splitting the value between the long term employees who have much more invested and the short term employees who have less invested.

    On the other hand, both provide the exact same benefit to the financial industry - a perpetual stream of passively invested wealth to be skimmed and stripped of value.

    Yes, there's no doubt it sucks. But AA is dead otherwise in a truly competitive market.

    Health care costs are another issue altogether, without a system like Taiwan, Europe, or Canada, that's something that's not going to change until America wakes up and joins the rest of the industrialized world.

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