Monday, March 30, 2009
Federally Insured Retiree Pensions of 44 Million Americans worth 64 Billion were switched to Stocks monthes before Economic Collapse....
This story is not getting enough coverage....and should be scrutinized.....
Snippet From Boston Globe::::
WASHINGTON - Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.
The agency refused to say how much of the new investment strategy has been implemented or how the fund has fared during the downturn. The agency would only say that its fund was down 6.5 percent - and all of its stock-related investments were down 23 percent - as of last Sept. 30, the end of its fiscal year. But that was before most of the recent stock market decline and just before the investment switch was scheduled to begin in earnest.
Okay.....so I know Nothing about PBGC.....but I was curious,and it turns out that they do have a relationship with the Automakers, and have been making announcements and having meetings this month....( and Now I am really curious WHY this has not made the news or CNBC ? ) Read more here and then ponder if this has any effect on the Auto Bailout Negogiations ? and were Mistakes made with the Auto Retirees Pensions ?