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.
2 comments:
Bill,
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 www.instapunk.com ?
Dave,
Portland, ME
Thanks for the kind words Dave. This is kind of therapeutic for me. Glad you found it interesting.
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