Financial World in Crisis: Property Tax & Pension Danger
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Explore the looming financial crisis stemming from widespread property tax overvaluation and overtaxation. Learn how an estimated $5.1 trillion problem, initially tied to school districts, is revealing itself as just the tip of a much larger, systemic issue.
Delve into the complex implications of Sarbanes Oxley requirements, which mandate banks to hold significant cash reserves in bonds, including municipal bonds. Understand how this intricate financial web directly threatens the security of 401Ks for millions of Americans and the stability of state and local government pensions.
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Transcript
Well, give us the the big picture perspective of how how deep is the the trouble that's brewing right now for our financial world. The property tax situation, be it the overvaluation and the overtaxation created at the Central Appraisal Districts on behalf of the school districts, we've tabulated it out at roughly 5.1 trillion. The problem is that's not the real number. And the reason it's not the real number is because under the Sarbanes-Oxley requirements, banks that are holding roughly 60% of their funds in cash are required to have that money in bonds. Part of that bonds are municipal bonds. But it gets much worse when you understand what that means. So, 60 million Americans actively participate in 401Ks. 21, roughly 21 million Americans are covered by state and local government pensions. So, you've got 401Ks and pensions that are holding these school district bonds. And roughly one-third of the adults receive income from various pension plans. But these pension plans are not going to perform because the bonds under the hood are not going to perform. So, if you realize the expenses that the median household income has and that the money does not exist today ...
