The Squid now sucking blood from your State Pension Fund

Comments please.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aDuLDy3OUFmg&pos=13

The Squid goes after any blood that is still warm.

We all know that Governmental Pension funds are in trouble of their own.   After all the S&P has gone nowhere for a decade.   Their planning is usually based on 7% to 10% growth using a blend of 80% equities and 20% bonds, or something similar.

But when I see newspaper articles how some of the large schools like Princeton or Kamehameha Schools, for instance, dropped the value of their entire portfolio (measured in many Billions), by 30% or 40%, you know there is trouble.   They were already "behind", now it is worse. 

Now States are started to use leverage to try to get back on track, and investment advisers are recommending leverage as a "free lunch" that States ought to take advantage of. 

http://globaleconomicanalysis.blogspot.com/2010/01/wisconsins-pension-strategy-update.html
We all know there is no prosecution coming.  Making statements like "leverage is a free lunch" should be punished just for absurdity.  Check out:

http://www.nytimes.com/2009/01/06/opinion/06chernow.htm?_r=2
Which is reference from a blurb I did--
http://oahutrading.blogspot.com/2009/10/fcic-then-and-now.html

 HERE IS THE KICKER--
After the brokers and banks lent like drunken sailors, pocketing fees and then giving away the spoils to the executives, now they want to have State Pension funds back the banks.

This would probably be another way for the Banksters, and let me coin, Brokesters (cause they broke everyone else) to suck more money from honest working people.

And it would be a good ring through the nose of the States, allowing the Federally controlled banking system to lengthen their whip, should any impetuous states like Texas start talking about
seceding from the union

If any State starts acting out, the Feds could pull some tricks like raising their banks reserve requirements or some other trick to force them into bankruptcy, destroying 90% of the wealth, and taking down the State retirement fund with it.   This would enrage the population, but they would also be really hurt, enough so that they may crawl back so they have at least enough to live, it would make the population mad at their State government for bringing this demise on them.

And the bank could be sold to some completely independent bank like Goldman, for 10% on the dollar.

I rest my case.