http://market-ticker.denninger.net/a...ions-PBGC.html
"Under Millard's strategy, the pension agency was directed to invest 55 percent of its funds in stocks and real estate. That included 20 percent in US stocks, 19 percent in foreign stocks, 6 percent in what the agency's records term "emerging market" stocks, 5 percent in private real estate and 5 percent in private equity firms.
What I warned of was the potential loss of your private pensions a few months back, if you remember.
Here's the formula for your impending doom, if you forgot:
The S&P 500 goes to 300 as the "bailouts" and "handouts" collapse the economy.
The PGGC's equity investments are worth 20 cents on the dollar, the private equity and REITs are zeros. This puts the fund 40% underwater across-the-board.
It is unable to pay and goes to Congress.
Congress can't fund additional borrowing because the bond market has dislocated.
You get 10 cents on the dollar for your supposedly 'guaranteed' pension.
Oh, and your Social Security and Medicare are cut by half (or more) too due to #4 at the same time.
Congratulations America, this is the price of remaining asleep while the robber barons fleece the Treasury.
Still think you ought to watch American Idol eh?
I give this two, maybe three years before it plays out."



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Then Greenspan comes back and says (approx) "I never saw this coming. I thought the bankers would act in their own best interests."

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