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Wednesday, February 28, 2018

"CalPERS Is Near Insolvency; It Needs A Bailout Soon" - Former Board Member Makes Stunning Admission

Two weeks ago, in the aftermath of the February 5 volocaust, we quoted David Hunt, CEO of $1.2 trillion asset manager PGIM, who said ignore the volatility spike, the real financial timebomb was and remains public pensions: "if you were going to look for what’s the possible real crack in the financial architecture for the next crisis, rather than looking in the rearview mirror, pension funds would be on our list."

In a brief discussion wondering what municipalities and states will do when local tax revenues decline and unemployment worsens, Hunt said "we're worried about those pension obligations.”

He is hardly alone: having reported over and over and over (and over, and over) again that public pensions are in deep trouble, two days ago none other than Steve Westly, former California controller and Calpers board member - manager of the largest public pension fund in the US, made a stunning admission, confirming everything:

"The pension crisis is inching closer by the day. CalPERS just voted to increase the amount cities must pay to the agency. Cities point to possible insolvency if payments keep rising but CalPERS is near insolvency itself. It may be reform or bailout soon."
Steve Westly ✔@SteveWestly
The pension crisis is inching closer by the day. @CalPERS just voted to increase the amount cities must pay to the agency. Cities point to possible insolvency if payments keep rising but CalPERS is near insolvency itself. It may be reform or bailout soon.http://ow.ly/CQGw30iyLko 

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5 comments:

  1. AnonymousFebruary 28, 2018 at 2:33 PM

    if the state wants to bail it out thats up to those voters
    no federal money! none, nada, zilch

    ReplyDelete
  2. AnonymousFebruary 28, 2018 at 3:16 PM

    After the long drought, it rained for three weeks. Maybe it will rain money for three weeks, too.

    ReplyDelete
  3. AnonymousFebruary 28, 2018 at 5:55 PM

    The leaders created the mess they have to deal with it. Tax dollars from other states should never be used. The citizens of that jurisdiction will hold them and their pensions accountable.

    ReplyDelete
  4. AnonymousFebruary 28, 2018 at 9:00 PM

    Claw it back from the elitist billionaires that became rich from running the fund.

    ReplyDelete
  5. lmclainMarch 1, 2018 at 10:25 AM

    Nope.
    No bailout or rescue.

    They created a sanctuary state where American tax dollars pay for millions of people who shouldn't be here. their housing. Their education. Their medical bills. Their electricity. Cash deposits on EBT cards. Translations services and special one-on-one tutors for anyone who just swam across the Rio.
    NOW, its a problem??

    I'm thinking that it's going to be a problem when they tell people who have worked --- WORKED ---- for 25-30 years that THEIR pension is cut because Carlos and Chiquita just got here from Tijuana and need a house. You eat crackers for dinner now. They get cable and leave the lights on all day.
    Repercussions will be explosive.
    And they know it.

    keep cheering.

    ReplyDelete

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