My wife is a teacher and has to pay into the Teachers Pension Fund. On June 1st I told my wife that CA was throwing away the $140 Million dollar gamble on CDO’s in Bear Sterns fund. Reckoning day came not even 2 months later.
“June 1 (Bloomberg) — Bear Stearns Cos., the fifth-largest U.S. securities firm, is hawking the riskiest portions of collateralized debt obligations to public pension funds.
The California Public Employees’ Retirement System, the nation’s largest public pension fund, has invested $140 million in such unrated CDO portions, according to data Calpers provided in response to a public records request. Citigroup Inc., the largest U.S. bank, sold the tranches to Calpers.”
Hawk you are not the only one… While we all cheer (myself included) for the housing market to go belly up… and then cheer more as hedge funds go under, nobody thinks about the collateral damage… Those who say I can’t wait for a recession are pretty self centered because in reality everyone will feel the effects. State and county pensions, teachers pensions, all kinds of collateral damage…yes in the long run it will help the housing market but there is a cost that everyone here on Piggington quietly does not discuss.
Hawk you are not the only one… While we all cheer (myself included) for the housing market to go belly up… and then cheer more as hedge funds go under, nobody thinks about the collateral damage… Those who say I can’t wait for a recession are pretty self centered because in reality everyone will feel the effects. State and county pensions, teachers pensions, all kinds of collateral damage…yes in the long run it will help the housing market but there is a cost that everyone here on Piggington quietly does not discuss.
There’s a cost either way. If real estate doesn’t come back down we create a substantial burden on an entire generation who ends up in debt up to their eyeballs just so some other people get rich. I know which way I think is fair.
There’s a cost either way. If real estate doesn’t come back down we create a substantial burden on an entire generation who ends up in debt up to their eyeballs just so some other people get rich. I know which way I think is fair.
I really think they were dying to throw it away. Who would actually invest in that mess? I hear you SD R as I say (almost daily) to “bring on the recession already”. If we need to have it I’m game as I saved 03-07 while the majority not only didnt save, but debted it up.
I told the wife last night, “someone can’t sleep right now and is hanging on as long as possible in our house we are goina buy”. Sick ey?
I really think they were dying to throw it away. Who would actually invest in that mess? I hear you SD R as I say (almost daily) to “bring on the recession already”. If we need to have it I’m game as I saved 03-07 while the majority not only didnt save, but debted it up.
I told the wife last night, “someone can’t sleep right now and is hanging on as long as possible in our house we are goina buy”. Sick ey?
I do the same thing hawk…As for who would invest in that mess… and other messes just like it? Aye caramba… I think if we saw the list of entities that made investments in these vehicles it would make us all laugh or cry.
I do the same thing hawk…As for who would invest in that mess… and other messes just like it? Aye caramba… I think if we saw the list of entities that made investments in these vehicles it would make us all laugh or cry.
Teachers actually pay into State Teachers Retirement System (STRS) which is totally separate from PERS. So your wife’s pension is not affected directly by anything that PERS does. Not to imply STRS doesn’t have its own problems–but there is a difference between the two… Now I, as a PERS member, should be crying.
Teachers actually pay into State Teachers Retirement System (STRS) which is totally separate from PERS. So your wife’s pension is not affected directly by anything that PERS does. Not to imply STRS doesn’t have its own problems–but there is a difference between the two… Now I, as a PERS member, should be crying.
