Easy Money, Hard Truths?

Leo Kolivakis's picture

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Fri, 05/28/2010 - 07:30 | 378657 Miles Kendig
Miles Kendig's picture

Keep at it Leo.  Sooner or later folks are going to have to actually listen to the actuaries, especially those that work the health care side of the house here in the US.  Fact remains that the oligarchs see these pension and health care funds as a great leverable, depletable via government guarantee resource.  An invaluable resource to stabilize their balance sheets and pump compensation.  Soon folks will wake up to the realization that all pensions will be milked dry in the pursuit of these so called predators to afford the oligarchs the lifestyle they believe themselves entitled to.  What a bunch of friggin' welfare queens.  Calling these folks predators is simply unbearable, calling them punks would be a disservice to all of the honest, hard working punks in penitentiaries all over the world.

Fri, 05/28/2010 - 07:10 | 378616 exportbank
exportbank's picture

Leo, you're bringing part of the overall pension problem to light. I fall into the category that asks "why do we even need these guys?" There isn't a fund anywhere that if it had to cash out would show a true life-time return better than if the money had been put into a Certificate of Deposit. This chasing for yield when you're trying with billions, is a fools game and only works in a ponzi system. The Canadian plans have liabilities in Canadian dollars yet they chase around the world buying crap real estate while getting whipsawed in various currencies. I'm all for guys making big bucks but only if it's their own money they're bringing to the crap table. 

Fri, 05/28/2010 - 03:33 | 378570 Sudden Debt
Sudden Debt's picture

It looks like the GOM is really turning into one big chocolat factory!

Can't wait to buy into the IPO when they launch it!


Fri, 05/28/2010 - 03:35 | 378572 Sudden Debt
Sudden Debt's picture

And for all you fuckers trying to cash in on my Idea, I just trademarketed the name "GOM CHOCOLAT"!



Fri, 05/28/2010 - 02:13 | 378526 Dirtt
Dirtt's picture

These union leader treasons should be dealt with accordingly.  The power grab by them is astonishing.  The USA better be drawing the line in the sand right now.

Fri, 05/28/2010 - 00:41 | 378458 RockyRacoon
RockyRacoon's picture

Complex systems will crash.  This is all about fine tuning a broken radio -- it does not work!

Fri, 05/28/2010 - 00:47 | 378465 Matto
Matto's picture


The demographics just arent in favour of the continuation of a system built up during the babyboomers highest earnings and productivity periods.

Fri, 05/28/2010 - 00:29 | 378433 Mercury
Mercury's picture

We need more focus on the forest, less on individual trees.

Yeah, like why the hell are taxpayer obligations being gambled on anything but the lowest risk assets in the first place?  When the gamble doesn't work out the government pensioners don't take the hit to the wallet...the taxpayers do.  This isn't a replay of the Harvard endowment fee dispute - take your fancy compensation formula and stick it. This is my money we're talking about here. You're fired! If public employees can't retire on savings socked away in Treasuries than we can't afford the public employees or there are too many of them or both.

It's too late and it's all going to collapse anyway - Einhorn isn't really posing a "what-if" question.  And the first phase will be state and muni pension defaults which the Feds will "bailout" in return for de facto control over state and local government itself (no it won't be free).

Thu, 05/27/2010 - 23:40 | 378391 Matto
Matto's picture

"Their biggest fear is debt deflation, and if their gambles don't work, they're going to get get it sooner than they think."


it is inevitable. Inflation in the sense of orderly price increases are not possible from here as printing money only impacts one small part of the overall equation, and they do not control the whole equation. The only thing they'll succeed in is eventual and total debasement of their currency which, i believe, is different to inflation.

Fri, 05/28/2010 - 06:35 | 378636 Crime of the Century
Crime of the Century's picture

total debasement of their currency which, i believe, is different to inflation.

Indeed - hyperinflation is to inflation as the Super Bowl is to bowling. Different animal...

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