Fraud at pension funds?

[dixiegrrrrl]

Smells like it, according to Deninnger's column:
http://market-ticker.denninger.net/archives/P1.html

These plans are critically underfunded - all of them. Many of them shifted to an equity-heavy focus in 2007 just as the market topped, and some (including CALPERS) were even dumb enough to get involved in the speculative real estate bubble in 2005! If your supposed pension is provided by these funds you have a problem and you better pay attention now, because these sorts of actuarial problems, once they get going, cannot be reversed as they take years to show up, by which time its too late to fix it.

The alleged "requirement" to make up shortfalls from the governments involved sounds all fine and well, but how do you squeeze blood from a stone? WHEN, not if, the tax base disappears (unemployed and broke people don't pay taxes!) your pension plan can "demand" tax hikes but if the money doesn't exist then that's just too darn bad.

The American Sheeple are lining up to be sheared again. I was warning about this over a year ago in regards to pension plans both public and private over a year ago, along with the clear and impending train wreck in state budgets.

[marketcrazy1]

1. people should be reading this

this guy has been ON TOP of this crisis from the start..... too bad this thread will only get about half a dozen replies.. GREEN SHOOTS!! LOL!! wake up people!!!!!!!!!!!!!!!! K/R.

[wroberts189]

5. I will give it a knr and bump it to 7

[seafan]

2. An endless sea of corruption. And certain names permeate it all.

Florida stands to lose $1 billion because of Lehman Brothers' collapse (Jeb Bush denies any role.)



Carlyle infests Florida 's investment funds as well. Hope this is part of the Carlyle/NY pension funds probe.

[dixiegrrrrl]

4. cheney looks like Uriah Heep in that photo.

[ProgressiveProfessor]

3. There will be extensive political fallout from this as well

The municipalities and districts will be required to give more to CALPERS. Eventually there could be more going to retirees than schools. When that happens, expect some sort of cram down on pensions. Just look at the auto industry for parallels. Unions will be forced to choose between active workers and retirees.

What many people do not realize is that for years California governors raided CALPERS since it was considered over funded. http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2002/01/28/editorial4.html Looks like the Gropenator is going to try that again (http://calpensions.com/2009/04/04/a-kinder-gentler-raid-on-calpers-funds/), though I thought that tactic was stopped by an Prop 162.

[Wednesdays]

6. K&R

:kick: