The FTSE 100 companies now have a combined pension deficit of £75 billion.
100 companies divided by £75 billion is £0.75 billion or £750 million per company.
Lots of factors involved ... and it can depend on the deficit versus the market cap. / the ability of companies to grow earnings to reduce the deficit and pay pensioners at the same time and loads more.
What happens when the Chinese stop loaning us money for whatever reason...
and we stop paying each other a fiver for a coffee and a sandwich, or to take our washing off the line or to clean our windows. (our beautiful service economy)
Companies are relying on the stock market to grow at about 7% to pay their pensioners.
Whats the difference between the Japanese cross shareholdings from the late 1980s and what we have now. ??
The market has not woken up to the fact that pension deficit's are debt and accounting rules (even though they're getting tighter) still allow companies to present an earnings per share number that has no relation with reality.
Where next. ? .. the emperor has been undressed for a long time but no one has said so.
Alan Greenspan... and the FED. The perception that he knows what to do and that there is some sort of floor to the markets. He is just a mere participant.
