Category Archives: Horse already left the barn

Pension Apprehensions What’s With The Tensions?

Prozac for the pension funds?

“What has developed is a corrupt system, where Wall Street, various fiduciaries, politicians and corporate managers are draining America’s savings,” said Frederick S. Rowe, a hedge fund manager who serves on the Texas Pension Review Board, an oversight body.

Now where have I heard this before?

More than three years before the current financial crisis, in a series Greenspan, the Wizard of Bubbleland that began on September 14, 2005, I warned:

Through mortgage-backed securitization, banks now are mere loan intermediaries that assume no long-term risk on the risky loans they make, which are sold as securitized debt of unbundled levels of risk to institutional investors with varying risk appetite commensurate with their varying need for higher returns. But who are institutional investors? They are mostly pension funds that manage the money the US working public depends on for retirement. In other words, the aggregate retirement assets of the working public are exposed to the risk of the same working public defaulting on their house mortgages. When a homeowner loses his or her home through default of its mortgage, the homeowner will also lose his or her retirement nest egg invested in the securitized mortgage pool, while the banks stay technically solvent. That is the hidden network of linked financial landmines in a housing bubble financed by mortgage-backed securitization to which no one is paying attention. The bursting of the housing bubble will act as a detonator for a massive pension crisis.

Emphasis mine. (This is excerpted from the last paragraph of the article, so by all means ignore the rest of it so I can point it all again later.)

Update: More here.

There AP Goes Again

A.P. Moving to Halt Use of Newspaper Articles on Web Sites

The Associated Press and its member newspapers will take legal action against Web sites that use newspaper articles without legal permission, the group said on Monday, in a clear shot at aggregators like Google.

If I were you guys I would go with the porn thing, apparently you have a lot in common.

Generational Theft? I Got Your Generational Theft Right Here

The United States Of Ponzi
Nouriel Roubini, 03.19.09, 12:01 AM EDT

Americans lived in a “Made-off” and Ponzi bubble economy for a decade or even longer. Madoff is the mirror of the American economy and of its over-leveraged agents: a house of cards of leverage over leverage by households, financial firms and corporations that has now collapsed in a heap.

John McCainus can’t even see a ponzi for what it is, but he is a master of long term debt management etc.

Shorter Bernanke

We should supervise these guys.