Mercury Rising 鳯女

Politics, life, and other things that matter

Pension insurance fund has been looted

Posted by Charles II on March 30, 2009

Ok, this is serious. [Via Talking Points Memo and Atrios]. Michael Kranish, The Boston Globe:

Just months before the start of last year’s stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

Emerging market stocks?? High yield corporate debt??? WTF!!!???

Atrios thinks that the Powers-That-Be were using this to prop up the market.

3 Responses to “Pension insurance fund has been looted”

  1. jo6pac said

    This fund didn’t have alot of money to begin with but it now has None. This an uncle milton scheme if there ever was one, destory the worker. The bad news just keeps coming for us average joes and janes.

  2. Charles II said

    Yeah, out of all the bad news we’ve heard, this stands out. We have two big companies, GM and Chrysler, at the brink of bankruptcy, not to mention their suppliers. A million or two million people. The GM and Chrysler pensions are underfunded. If they go down, the first person the bankruptcy judge will call will be the head of the PBGC.

    And it sounds like he’ll get a “This number has been disconnected” message.

  3. cass said

    yep, it took my brain about 2 seconds to reach the same conclusion as Atrios.

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