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HomeWeekend Read: The Pension Fund That Ate California
Posted by Larry Doyle on February 16th, 2013 9:38 AM |
If anybody still has any confidence in the manner in which our nation’s largest state has been run, this is a MUST READ. Steven Malanga of City Journal writes of how California has methodically gone about screwing its future generations.
CalPERS’s corruption, insider dealing, and politicized investments have overwhelmed taxpayers with debt.
After spending years dogged by unpaid debts, California labor leader Charles Valdes filed for bankruptcy in the 1990s—twice. At the same time, he held one of the most influential positions in the American financial system: chair of the investment committee for the California Public Employees’ Retirement System, or CalPERS, the nation’s largest pension fund for government workers.
Valdes left the board in 2010 and now faces scrutiny for accepting gifts from another former board member, Alfred Villalobos—who, the state alleges, spent tens of thousands of dollars trying to influence how the fund invested its assets. Questioned by investigators about his dealings with Villalobos, Valdes invoked the Fifth Amendment 126 times. (more…)
California Pen$ion Nightmare Wor$en$
Posted by Larry Doyle on May 9th, 2012 7:04 AM |
What is the best part of a nightmare?
When you wake up and it is over.
The folks in California do not have that luxury as they get to live the nightmare that defines their public pension system everyday. In fact, the nightmare is getting scarier. How so?
The “not so exclusive” California $100,000 Club continues to experience explosive growth. Let’s check in on this club which since last we checked a year ago has seen close to a 25% increase in size. (more…)
California’s $100,000 Club’s Explosive Growth
Posted by Larry Doyle on June 2nd, 2011 8:15 AM |
While many clubs in our nation continue to suffer from declining membership rolls, there is one “club” experiencing explosive growth. What makes the entrance into this club so special is the ability of the members to curry favor with those controlling the purse strings. Smell a little funny? Just a little? See the real entrance into this club is effectively a circuitous system of ‘payoffs’ and ‘kickbacks’ with the ultimate costs borne by average American citizens.
What club is this? (more…)
New Jersey’s State Pension? Fuhgeddaboutit!!
Posted by Larry Doyle on August 19th, 2010 7:35 AM |
In a state that has a reputation for putting the ‘organized’ in ‘organized activities,’ is anybody surprised that New Jersey has been charged with misrepresenting the health of its state pensions? (The state has already settled). How do you think politicians get elected? Line the pockets of the unions with lavish pensions and perks, then stick it to future generations. This scam has been played for years. What’s new now?
The Wall Street Journal provides further details on this story in reporting, SEC Sues New Jersey as States’ Finances Stir Fears:
The Securities and Exchange Commission, in its first securities-fraud case against a state, accused New Jersey of misleading investors about the health of its two largest state pensions while selling billions of dollars in bonds.
State authorities settled the case without admitting or denying wrongdoing.
While it singled out New Jersey, the SEC is conducting several investigations into what other states disclosed about their weakened finances. (more…)
Bruce Malkenhorst Should Thank Robert Rizzo
Posted by Larry Doyle on July 24th, 2010 10:15 AM |
Bruce Malkenhorst must be a very happy man today and for that he should thank Robert Rizzo.
Who is Malkenhorst? Who is Rizzo? What is the story here?
Readers may recall that 14 months ago, Malkenhorst, a former municipal employee in Vernon, CA was exposed as the recipient of a sweet little ‘half million dollar pension’ connected to his duties in the bustling metropolis of Vernon, CA. How bustling? Vernon, a community in southern California, has a total population of approximately 100 citizens.
Malkenhorst and his cronies in Vernon singlehandedly redefined the concept of municipal fiscal abuse. I highlighted this story and accompanying unbelievable details a year ago in writing a story which an inordinate number of readers have reviewed entitled California’s $100, 000 Club.
This week, Malkenhorst and his pals in Vernon must have partied real hard and toasted Robert Rizzo all week long. Why is that? (more…)
Larry Fink Warns CalPERS; Sense on Cents Warns America
Posted by Larry Doyle on March 1st, 2010 9:19 AM |
When the king of Wall street speaks, America would be wise to listen.
Despite what one may think or feel about Wall Street, prudence dictates we are fully aware of developments on the major thoroughfare of our economic landscape. The king, that is Larry Fink the CEO of the asset manager Blackrock, last year sent a note of investment caution to CalPERS (California Public Employees Retirement System) which all of America should heed. (more…)
