Monday, June 02, 2008

Next Shoe Retirement Losses

From The Morning Call:
So far this year, both the State Employees' Retirement System (SERS) and the Pennsylvania Public School Employees' Retirement System (PSERS) have lost billions of dollars in the stock and bond marketplace. In fact, SERS lost $1.48 billion just in January.

These losses do not include the gigantic stock market losses of March in which Bear Sterns almost declared bankruptcy. The Bear Sterns incident, combined with the ongoing subprime mortgage dilemma, resulted in the largest investment losses since the 9/11 disaster.
Even if you aren't one of the growing number of RELOCs (Retirement Equity Liberators On Credit) what's left ain't gonna feed the cat.

Pinched Consumers
Scramble for Cash

After a long binge of borrowing, U.S. consumers face a credit crunch and a sagging economy. To sustain their living standards, many Americans are doing what comes naturally: scrambling to raise more cash.

More in this WSJ article. A must read.


wagga said...

How well is CALPERS performing?.
It's the largest fund of it's kind.
Would you expect it to show early losses, or would they be delayed because of the sheer size of the fund?

Just depriving cs of a first.

Rob Dawg said...

CalPERS is screwed but by dint of sheer size and inertia it will be a while before the crap floats to the top. The best leading indicator is the number of unexpected resignations eviscerating their investment management personnel.

H Simpson said...
This comment has been removed by the author.
H Simpson said...

yet another old retiree crushed by too much home that will not sell at insane prices the minute they get sick.

Here's Johnny the sheriff to toss me!!!

H Simpson said...

Hey Ed,

check the mail box.
there could be a check from Publisher's Clearing House worth millions.

Or one from the bank for $1106.44 if you mail in the keys..