Home » Opinion » Editorials
Taxpayers beware! Bailouts not a thing of the past
An independent audit found that the Federal Housing Administration doesn't have enough capital to cover its expected losses. In fact, the losses likely will leave it with a $13.5 billion deficit.
Already, the voices are talking about a taxpayer bailout.
And the Pension Benefit Guarantee Corporation, charged with insuring pensions for about 43 million Americans, has a deficit reaching $34 billion in the past year, a record for the corporation. Overall, the agency's liabilities stand at $119 billion.
It is funded by insurance premiums on private employers and investment returns on its reserves. It says Congress needs to allow it to increase the premiums charged. The problem hasn't developed over night.
These are small potatoes, perhaps, compared to the fiscal cliff issue and the soaring deficit. But they are part and parcel of the entire problem.
Like Social Security, where there are obvious and simple fixes, these problems do not need to continue festering and growing.
Yet government, specifically Congress, fails to act. Why? Why are the losses, the problems allowed to continue to grow when simple solutions can be found?
Why is government in the housing mortgage business?
Why shouldn't pension insurance premiums be adequate to support the system?
Why shouldn't Social Security's retirement age be indexed to the major advances in life expectancy gained since the system was inaugurated?
Government's failures, and often its actions, are adding to the problems.
A fine example, of course, was the payroll tax cut reducing revenue for Social Security even as the very people voting for the tax cut wrung hands over the system's growing deficit.
The taxpayers are being left on the hook. And the hole is getting deeper.
Watch closely. Your future, and the future of your children and grandchildren, is at stake.
READER COMMENTS: 0
- White Mountains school board expands preschool - 0
- Milford team wins seatbelt challenge - 0
- Activist resident launches alternative UNH logo search - 0
- Loeb School offers workshop on producing newsletters - 0
- Threats at Goffstown High ‘not credible’ - 0
- Pushback against logo plan for UNH heats up - 1
- Nashua elementary teacher honored for real-world lessons - 1
- Elementary students in Farmington offered seven habits of healthy kids - 0
- Afterschool activities canceled in Jaffrey - 0
READER COMMENTS: 0
- Gambling bill scuttled, 'Now it is going to be really tough' for budget - 2
- NHIAA Roundup: BG girls’ tennis team sweeps Pinkerton - 0
- NHIAA box scores, summaries for May 22 - 0
- Officials say Goffstown High ‘safe’ after threat of violence - 0
- Manchester Community College graduates told ‘speak your minds’ - 0
- Portsmouth manhunt suspect turns himself in to police - 0
- Nurse said Exeter Hospital is making her a ‘scapegoat’ in hepatitis case - 0
- Derry council defends officials' purchases - 0
- Nashua librarian reports E-books flying off virtual shelves - 0
Memorial Day events in New Hampshire
Buchholz moves to 7-0 as Red Sox post win
New Hampshire Club News
Consider Nevada: Gambling always expands