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);
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.