Monday, March 3, 2008

Government Workers

Previously on Brick Oven:

Card #1: Sub-Prime Mortgages (populist government policies; greed);

Card #2: All Mortgages (negative equity situation);

Card #3: Municipal Bonds (unrealistic due diligence; declining tax revenue; ratings corruption);

And now:

Card #4: Government Pensions

90% of large government pension funds were healthy in 2000; the number dropped to 58% in 2006 (GAO). The kicker: the GAO calculation assumed sustained rates of investment return. Which means fund managers chasing risk in order to make returns. See Card #3.


Dave said...


All I was trying to do was research building my own brick oven. Now I don't feel like I have enough ammo, or gold (I'm okay on guns though).

Spent most of this evening reading your excellent blog from the bottom-up. Well researched, thoughtful positions. Keep it up.

Might I recommend ?

Portland, ME

Bill said...

Thanks for the kind words Dave. This is kind of therapeutic for me. Glad you found it interesting.