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Wall Street plunders state pensions in the US

Started by 2Revolutions, Oct 22, 2018, 06:48:11 AM

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2Revolutions

They are robbing pension plans and are floating the idea of cutting Social Security and Medicare.  There is a reason why the elite want gun control.




Hedge Fund Dogs

https://theintercept.com/2018/10/21/kentucky-pensions-crisis-hedge-funds/


In the years since that big Arrowhawk play, Kentucky's public pensions have descended into financial crisis, a crisis that threatens to have ripple effects across the state. "Poor, rural counties in Kentucky have two major economic drivers," state Rep. Jim Wayne explained. "One is the school system and the other is the courthouse. Most of them have no other industry." Of the 120 counties in Kentucky, Wayne said, "government jobs is the No. 1 employer." By 2016, the credit rating agency Standard & Poor's declared Kentucky's the worst-funded state pension system in the country. At that point, the state was meeting only 37.4 percent of its funding obligation — half the national median of 74.6 percent.

Tobe had never heard of Arrowhawk, and he quickly figured out why: Arrowhawk was a new fund whose first investor was the Kentucky Retirement Systems, or KRS. During his tenure as a trustee, KRS staff had proposed moving 5 percent — roughly $650 million — of the pension's total holdings, then invested almost entirely in a mix of stocks and bonds, into large, established "funds of funds" — vehicles that allow investors to buy a basket of hedge funds, rather than risking everything on a single fund. Instead, the staff had steered the investment committee in 2009 to a startup fund with no track record. Tobe pressed the issue at several public meetings of the KRS board and eventually, in 2010, an internal audit revealed that Arrowhawk paid more than $2 million to a middle man named Glen Sergeon to land Kentucky as a client. KRS's chief investment officer resigned during the course of the investigation (only to land a private-sector job as a managing director at a giant investment consulting firm). "Bad publicity, along with mediocre performance, sealed the fate of Arrowhawk," Tobe wrote in his self-published book, "Kentucky Fried Pensions." Two and a half years after Kentucky selected the firm for its first-ever hedge fund investment, Arrowhawk shut its doors.

More at the link  ---> https://theintercept.com/2018/10/21/kentucky-pensions-crisis-hedge-funds/



Last Edit by Humphrey

2Revolutions

A Wall Street Coup

https://theintercept.com/2018/10/20/public-pensions-crisis-wall-street-fees/

A "Wall Street coup" — that's how pension expert Edward "Ted" Siedle describes it. Public pensions across the country now squander tens of billions of dollars each year on risky, often poor-performing alternative investments — money public pensions can ill afford to waste. For all the talk of insolvency, $4 trillion now sits in the coffers of the country's public pensions. It's a giant pile of money of intense interest to Wall Street — one generally overseen by boards stocked with laypeople, often political appointees. "Time and again," Siedle has written, "hucksters successfully pull the wool over these boards' eyes."

In 1974, in the wake of the spectacular collapse of the Studebaker car company and its pension plan, Congress passed a piece of landmark legislation, the Employee Retirement Income Security Act. Under ERISA, companies are required to adequately fund their pensions and follow what was then called the "prudent man" rule, which barred those in charge from putting pension dollars into overly risky investments. The departments of Labor, Treasury, and Commerce were charged with overseeing the country's pensions and a new body was created, called the Pension Benefit Guaranty Corporation, that would backstop pensions should a business default.

Except Congress left out public employees entirely — with a yawning loophole that granted an exemption to public pensions. ERISA expressly exempts public pensions operated by state and local governments — the plans that provide for the country's teachers, firefighters, police officers, and librarians in their retirement. Forty-four years after the passage of ERISA, these public workers comprise the majority of active employees still contributing to pension plans. And they have been left largely unprotected.

More at the link --->  https://theintercept.com/2018/10/20/public-pensions-crisis-wall-street-fees/



Last Edit by Humphrey

Amazon

Who needs a pension plan when the system is engineered to kill off citizens via toxic air, water, and food ?

Especially since health care is too expensive for the majority of Americans...

There are still plenty of jobs, aren't there ?

Just go enlist in the military,
or the prison system,
the police,
or Wallmart.

Better yet, sign up for employment in 2 or 3 different systems.

Even here in the UK,
all that is available for the under-educated or untrained are jobs with 0% contract hours.
Get this!
You wake up, get dressed, sit by your phone, see if your employer calls you to tell you that 3 or 6 or some hours are available for you that day.
No phone call, well at least your washed and dressed.
You can always knock on doors and see if your neighbour needs their dog walked.

Do I sound bitter?

God help us, please.



Last Edit by Humphrey