And the hits just keep on coming. Good luck CA government and taxpayers.
1 posted on
07/18/2016 8:56:52 PM PDT by
bkopto
To: bkopto
They divested from Israel and gun companies didn’t they?
I guess the windmill factories aren’t paying too well these days.
2 posted on
07/18/2016 8:58:42 PM PDT by
headstamp 2
(Fear is the mind killer.)
To: bkopto
Don’t worry - taxpayers will make up any shortfalls of the insane public union pensions...
3 posted on
07/18/2016 8:58:57 PM PDT by
2banana
(My common ground with terrorists - they want to die for islam and we want to kill them)
To: bkopto
CalPERS assumes that, in the long-term, it will earn investment returns averaging 7.5% a year.
###############################################
Way too high for this Obama economy.
4 posted on
07/18/2016 9:08:39 PM PDT by
Graybeard58
(There's a race war raging, I didn't start it but I have chosen sides.)
To: bkopto
If I understand correctly, much of the CalPERs board is made up of union creeps; and if so, might a full, complete, and public audit of their investment choices and rationale be in order?
5 posted on
07/18/2016 9:08:56 PM PDT by
Seaplaner
(Never give in. Never give in. Never...except for convictions of honour and good sense. W. Churchill)
To: bkopto
They should just do indexing and fire the crony advisors making hundreds of millions or more per year.
7 posted on
07/18/2016 9:18:55 PM PDT by
aynrandfreak
(Being a Democrat means never having to say you're sorry)
To: bkopto
This is what happens when the Federal government wants to keep interest rates so low so that they can keep borrowing more money. It also what happens when bankers want to use other peoples money to get rich without paying anything for the privilege.
8 posted on
07/18/2016 9:21:47 PM PDT by
Revel
To: bkopto
Cal-PERS lost 9 million dollars in a now failed Greek hedge fund managed by none other than Hillary Clinton's son-in-law. Put another way, the Clinton extended family picked up 9 million dollars from Cal-Pers.
9 posted on
07/18/2016 9:24:12 PM PDT by
Dads Bag
(red county in a blue state)
To: bkopto
If The Fed says 0% interest - zero it is. Deal with it.
To: bkopto
The Federal Reserve is the culprit here. Pension funds invest in a lot of fixed income securities. In fact they are often limited in what they can invest in. Currently the fed rate is so low that no one can make money on fixed income. As long as the Fed holds down rates, pension funds will continue to go bust.
This is the exact issue of why institutional investors in 2007-2008 bought risky investments like subprime mortgages, packaged up into bonds that were declared to be AAA, even though everyone knew they were tremendous risks. Interest rates had been falling since 1981, and they had to keep chasing higher returns. This meant adding risk.
To: bkopto
I’ll be right there when the state has to start selling things like art, parks, state senate office furniture...
13 posted on
07/18/2016 9:33:16 PM PDT by
VanShuyten
("a shadow...draped nobly in the folds of a gorgeous eloquence.")
To: bkopto
They need to get on the Trump bandwagon quick.
19 posted on
07/18/2016 10:42:10 PM PDT by
umgud
(ban muslims, not guns)
To: bkopto
The shortfall of 7% will compound every year unless the fund makes over a 7.5% return next year.
This is what the “financial advisors” aka scam artists never tell you when you have a bad year.
The shortfall should be collected from California taxpayers now—but don’t sit and wait for that to happen.
20 posted on
07/18/2016 11:10:26 PM PDT by
cgbg
(Epistemology is not a spectator sport.)
To: bkopto
They know Uncle Sugar will bail them out.
27 posted on
07/19/2016 12:00:55 AM PDT by
DesScorp
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