We've been paying attention to the debt-ceiling debate in Washington because not only is market performance important to our individual savings, it's also critical to the ability of the NYSTRS to fund our pensions. Sure, if the markets tank taxpayers will make up the difference. If that happens and employer contributions rates show a drastic jump, we'd be almost certain to see a constitutional convention which would likely remove the protections from our pensions.
The Washington Post's Ezra Klein is my goto person for an understanding of the mechanics and meaning of what's happening in Washington. His post Saturday evening is well worth reading:
http://www.washingtonpost.com/blogs/ezra-klein/post/what-killed-the-deal-last-week-and-what-might-make-one-happen-this-week/2011/07/11/gIQADNccVI_blog.html?hpid=z1
Here's his concluding paragraph:
"....It’s more likely that what we’re really doing now is wasting time until the markets plummet and Boehner’s members decide that a deal is better than no deal. And there’s a very good chance that the first major show of market concern could come [Sunday] night, when the Asian markets open. Boehner is hoping to present a plan by then, but a plan is very different from a deal. A plan is something politicians can come up with. A deal, we’re increasingly finding, is something that we need the markets to force."
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