[LS]

Richard, they are not "borrowing money to buy stocks." They are shifting their pension funds from bonds to stock balances. It makes sense.

[arete]

Well, CNBC reported the story yesterday. What CNBC reported is not a shift or reallocation, but the actual selling of pension fund issued bonds to raise cash to buy stocks.

Richard W.

[arete]

Give the usual CNBC spin, anything is possible. There are several articles out there though which are talking about how states are issuing debt obligations in order to refund their pension plans. I think that NJ tried that several years ago and lost a bundle in the process.

"A handful of cash-strapped states plan to borrow to put money into their state employee pension systems, an idea that analysts say is a gamble that might not pay off."

States Mull Borrowing To Bolster Pension Plans

I'm sure that at least a portion of that new cash will be invested in equities.

Richard W.