[GreatJoeMcCarthy]

This sounds like an explosive story with implications for all state pension funds.

I am deeply worried about the financial situation in California. This story sounds like another massive crack in the foundation. As goes California finance so goes the nation, and New York is in horrible financial shape as well. I can’t begin to imagine the horrors if both California and New York begin to default.

I wonder if this story is a portend of things to come if Social Security were to be privatized. I hope someone with more knowledge on this will comment.

ps - I think New Jersey is under investigation by the S.E.C. for the same kind of pension fraud.

[Frantzie]

http://www.zerohedge.com/article/ron-paul-us-government-must-admit-it-bankrupt

Ron Paul: “The U.S. Government Must Admit It Is Bankrupt”

The SEC investigates after the fact usually and it is a political agency. The lower level workers at the SEC and mid level are usually diligent but the top management are usually political hacks.

Calipers has been a piggy bank for liberals and union bosses in CA for at leats 2 deacdes.

[johniegrad]

I wonder if this story is a portend of things to come if Social Security were to be privatized.

I would trust the private sector more than the State of California or any other state for that matter.

[Marty62]

Social Security were to be privatized.
...........

The politicians have been robbing Social security for decades. No one should be shocked by this turn of events.