It's not just basic finance, it's common sense: A large pool of money invested by professionals will yield far greater returns than small, separate accounts managed by individuals with no professional training in finance.
roponents of the drastic Chicago pension cuts sought by the city have threatened a range of doomsday scenarios if their proposal is not enacted. Rather than the thoughtful, informed discussion this matter deserves, this is the equivalent of shouting "Fire!" in a crowded theater.
That's the one good thing you can say about what's going on in Detroit: It will hopefully motivate the politicians, employees and unions everywhere else to face reality and not believe the Tooth Fairy will somehow deposit the cash under their pillows.
The pension crisis still has no solution, and as each day passes, the Illinois taxpayers are the ones who pay the piper -- literally. It's cost taxpayers $21 billion since 2000, and it's only getting worse.