[JayCT]

It looks like Xerox is splitting into two companies. One company will be for document processing while the other will assist businesses with outsourcing services. Xerox has been based in Connecticut for decades now, first in Stamford and now in Norwalk. How do you think this split will impact our state? Will it be good or will it mean job cuts? Thoughts? Jay

Xerox is splitting into two companies | HartfordBusiness.com

[Mr_250]

Originally Posted by JayCT

It looks like Xerox is splitting into two companies. One company will be for document processing while the other will assist businesses with outsourcing services. Xerox has been based in Connecticut for decades now, first in Stamford and now in Norwalk. How do you think this split will impact our state? Will it be good or will it mean job cuts? Thoughts? Jay

Xerox is splitting into two companies | HartfordBusiness.com

After reading the press release what stood out to me was the 2.5b in savings once they split. I think this will be a none issue for Connecticut. They certainly will not move both their headquarters here but I think they will keep atleast one here. It also depends on what they want from each company. This will be interesting but zero sum for Connecticut.

The other story to keep an eye on is Aetna. That to me has a bigger impact. They will not leave Connecticut but we might be seeing some changes in terms of people.

[hartford_renter]

Originally Posted by JayCT

What are you all talking about? The state is no where near going bankrupt so stop talking like it is. Jay

I'm talking about the state debt and unfunded liabities.

Pension obligations are about 25 Billion

The state will go bankrupt that is a fact

[hartford_renter]

Originally Posted by mlassoff

The state can't and won't go bankrupt. Eventually some combination of tax hikes and spending cuts will end the current crisis. Some will probably find this untenable and move...

THe state retirement system needs to be privatized for future employees. We also need to keep our obligations to those who worked for the state in the past...

I guess it can't go bankrupt if you define bankrupt as a legal term.

But the state cannot pay back its obligations and will not pay those obligations. Pension benefits will not be paid, and bondholders will not get their money.

I call this bankruptcy but if you want to come up with another name for it good for you. I predicted GE would leave and they did. I am telling everyone this state will go bankrupt and they will.

I work as an actuary and trust me no one thinks the pension obligations will be paid

[Mike 75]

Originally Posted by hartford_renter

I guess it can't go bankrupt if you define bankrupt as a legal term.

But the state cannot pay back its obligations and will not pay those obligations. Pension benefits will not be paid, and bondholders will not get their money.

I call this bankruptcy but if you want to come up with another name for it good for you. I predicted GE would leave and they did. I am telling everyone this state will go bankrupt and they will.

I work as an actuary and trust me no one thinks the pension obligations will be paid

The state will be on the hook for these obligations regardless. Bankruptcy allows you to discharge your debts, either by eliminating them fully or reducing them. Post bankruptcy there are no debts and you get to start over debt free. Without the ability to declare bankruptcy, the state is responsible for every dollar of these obligations. If the state does not pay, they will be sued and they will lose. So there are three options as I see them: congress amends the law to allow states to declare bankruptcy, the state reaches agreement with the unions to modify its obligations, or the state pays the obligations in full at the expense of its taxpayers, residents and current employees.

You're right though, the situation is untenable. And the longer nothing is done, the more likely that option three is outcome. Which is not good.

[BobNJ1960]

Originally Posted by Mike 75

The state will be on the hook for these obligations regardless. Bankruptcy allows you to discharge your debts, either by eliminating them fully or reducing them. Post bankruptcy there are no debts and you get to start over debt free. Without the ability to declare bankruptcy, the state is responsible for every dollar of these obligations.

LOL! That ends when Feds either pay Illinois debt or funds fail to get to pensioners.

[Mike 75]

Originally Posted by BobNJ1960

LOL! That ends when Feds either pay Illinois debt or funds fail to get to pensioners.

You're right. I forgot about the Fed bailout scenario. But that will depend on who's president. A Dem president is more likely to be sympathetic to a bailout than a Rep one.

[BobNJ1960]

Originally Posted by Mike 75

You're right. I forgot about the Fed bailout scenario. But that will depend on who's president. A Dem president is more likely to be sympathetic to a bailout than a Rep one.

The bailout will not happen, but laws will be established giving states the right to go through Bankruptcy Court. Because Illinois is just the first.

[hartford_renter]

Originally Posted by Mike 75

The state will be on the hook for these obligations regardless. Bankruptcy allows you to discharge your debts, either by eliminating them fully or reducing them. Post bankruptcy there are no debts and you get to start over debt free. Without the ability to declare bankruptcy, the state is responsible for every dollar of these obligations. If the state does not pay, they will be sued and they will lose. So there are three options as I see them: congress amends the law to allow states to declare bankruptcy, the state reaches agreement with the unions to modify its obligations, or the state pays the obligations in full at the expense of its taxpayers, residents and current employees.

You're right though, the situation is untenable. And the longer nothing is done, the more likely that option three is outcome. Which is not good.

Ha ha thats pretty funny.

So sue the citizens of the state, then what? There is no money are you going to jail everyone? What if people just leave?

There is no money left and it will not be paid back. You can't force the feds to bail out the states, it will never happen especially if there is a Republican president.

See this is why socialism doesn't end well. Again, just so I'm clear I'll say it again the state of CT cannot pay back its obligations there is no money left. They will reneg on those obligations, call it what you will I call it bankruptcy.

Maybe you envision some kind of police state to save your pension. This scenario seems unlikely to me

[Mike 75]

Originally Posted by hartford_renter

Ha ha thats pretty funny.

So sue the citizens of the state, then what? There is no money are you going to jail everyone? What if people just leave?

There is no money left and it will not be paid back. You can't force the feds to bail out the states, it will never happen especially if there is a Republican president.

See this is why socialism doesn't end well. Again, just so I'm clear I'll say it again the state of CT cannot pay back its obligations there is no money left. They will reneg on those obligations, call it what you will I call it bankruptcy.

Maybe you envision some kind of police state to save your pension. This scenario seems unlikely to me

What they will be forced to do is divert the money from everything else to pay the promised benefits. And in all likelihood, there will be enough money to do so. But it will come at the expense of everything else - so there will be drastic cuts across the board coupled with tax increases. No more funding for schools, for social services, for cities, for current state employees (LOL) or anything else. The state will exist to essentially pay benefits to people who no longer work for it.

I'm with you, it's a ridiculous outcome, and will generate a ton of outrage. But people need to get pissed off now and force our elected officials to do something about it. Cause When this gravy train ends, it's going to be ugly.