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Why do we trust government with our money?
"CalPERS says that when it purchased $1.3 billion worth of special securities sold only to large investors like pension funds, all that it knew about the complex financial instruments is that they had top ratings from Moodys, Standard & Poors and Fitch.
Now CalPERS, which may have lost $1 billion on the deal, has belatedly learned that there were subprime mortgages and other risky assets in the structured investment vehicles (SIVs) purchased in 2006 from three hedge funds, two of them based in London."
Wwould you spend $1.3 billion without asking for details? Government does.
Now you know why CalPers is over $200 billion upside down. This is the worse form of incompetence. Now we need to follow the money to see who gained from our massive lose.
Corruption has many forms--CalPers is just one of them.
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"CalPERS says that when it purchased $1.3 billion worth of special securities sold only to large investors like pension funds, all that it knew about the complex financial instruments is that they had top ratings from Moodys, Standard & Poors and Fitch.
Now CalPERS, which may have lost $1 billion on the deal, has belatedly learned that there were subprime mortgages and other risky assets in the structured investment vehicles (SIVs) purchased in 2006 from three hedge funds, two of them based in London."
Wwould you spend $1.3 billion without asking for details? Government does.
Now you know why CalPers is over $200 billion upside down. This is the worse form of incompetence. Now we need to follow the money to see who gained from our massive lose.
Corruption has many forms--CalPers is just one of them.
More...