No guarantees

Deficit of Pension Guarantor Hits Record $33.5 billion - NYTimes.com:

"WASHINGTON — The deficit at the federal agency that guarantees pensions for 44 million Americans more than doubled in the last six months to a record high, reaching $33.5 billion, largely as a result of the surging number of bankruptcies among companies whose pensions it must now take over."

My opinion is that there should be no such thing as a guarantee for any financial instrument. It provides an illusion of safety that leads to mistakes. It's not just government guarantees that lead to moral hazard - it's any kind of financial guarantee.

All financial instruments have risk - including guarantees. Put that into your recursive pipe and smoke it.
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