Tuesday, March 31, 2009
Genius! Pure Genius!
The Federal agency responsible for guaranteeing corporate pension plans switched from bonds to stocks at the height of the stock market in 2007. Instead of making money, the PBGC has potentially lost several hundred billion dollars just when it needed that money the most. Buying at the height of a stock market is pure folly. Evidently, there was an assumption that the market would keep going up and up, but this agency is like an insurance company so it is supposed to invest conservatively. One couldn't have planned a disaster this well. Social unrest, here we come.
To see what lots of money does to grown men, read the article pointed to by this Calculated Risk post. The ending is rather ominous as well. It might be time to invest in silver or gold.
To see what lots of money does to grown men, read the article pointed to by this Calculated Risk post. The ending is rather ominous as well. It might be time to invest in silver or gold.
Labels: Folly
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Same thing happened here in Australia where "Local" (city/town) governments turned to international share investments in 2007 because they were considered "safe" or "AAA". This was based on the bland assumption that shares, having risen for years, would always safely rise.
My little town lost $1 million in February.
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My little town lost $1 million in February.
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