October 31, 2008
A ROUNDUP: The Pension Fund Problem to Come. Some places, it’s already arrived. And this part seems right to me: “Americans and politicians have an erroneous view that stocks are for ‘rich people’ and not them. Wall Street remains a mysterious world, operated largely behind closed doors by mad scientist math wizards. The pension problem proves nothing could be farther from the truth. The teachers, cops and other government workers who trust their retirement to companies such as CalPERs may suddenly take a keen interest in equities.”
Plus this: Colo. public employee pension fund plunges $10B. “Colorado PERA had been hoping that investment gains would help resolve its long-term underfunding problem.” I’ll bet they had. Hope is not a plan.
UPDATE: Taxpayers To Fund Public Pension Shortfalls. “While most people have watched their 401K values drop with the stock market over the past several weeks, taxpayers may have spend millions more propping up pensions paid to county and state retirees.” I don’t think that will play well, politically.