Risk and pensions
Can't believe I missed this. From the Detroit Free Press the day before yesterday: Risky bets cost Detroit pension funds $480 million. and check out their side story: Where the Detroit pension funds went wrong. Note the picture they have there on the right. Look familiar? Their accounting.. a $
Does make you want to give 200 million working capital to people who make those types of decisions. Doesn't it.
We all know what one of the 'bets' the Detroit pension system made is right? Would be a sure thing casino in Downtown Pittsburgh. That has turned out real well for them. Not. In fact, I really suspect that the bath (euphemistically the restructuring ) the Detoit pension system took on its investment here is why the debt rating of the casino here is considered a "selective default".
I can't resist. Just one minor investor lost just under $200 million dollars on the casino, yet the casino is appealing it's under $200 million dollar property assessment.
Looks like they have a whole series on the problems the Detroit pension system has. The really really sad thing in all that is that the Detroit public pension system is in far far better financial shape than is the city of Pittsburgh's pension fund. Really.. by far. Also much more transparent if you believe that even. That's the thing that gets me about all the pension bruhaha here. Folks on all sides debating over things that are mostly unknown to the public, and even to the folks who are supposed to know what is going on.