-Pensions' Private-Equity Cash Reduced 59% as Profits Shrink Major U.S. pension funds have recouped less than half of the $53.8 billion in cash they've invested in private-equity funds started since 2000. All told, they haven't seen a paper profit in seven years. That means less money for the plans' retirees. Aug. 20 (Bloomberg) -- U.S. pension funds contributed to the record $1.2 trillion that private-equity firms raised this decade. Three of the biggest investors, state pensions in California, Oregon and Washington, plunked down at least $53.8 billion. So far, they only have dwindling paper profits and a lot less cash to show the millions of policemen, teachers and other civil servants in their retirement plans... http://www.bloomberg.com/apps/news?pid=20601109&sid=acWVaiPjU5iw
pension funds are similiar to a ponzi scheme. you need new contibutors to the pension fund to continue and replace the ones who die... the company pension plans dissolves the company is bankrupt...there may be no social security or gov't pensions are reduced if the company or gov't is broke. thes pensions must pay cash to retirees... all these corporate, institutiona pensions would be jeopardy if the unions were laid off or high unemployment.... that is why most of their funds are in cash/ bonds. with interest rates so low,,,,the pension fund models are at risk. and lots of hedge funds solicit their money from pension funds. pension funds are 'dumb money' in the market.
Pension funds are easy pickings for wall street shysters like these private equity thieves who specialize in sucking liquidity out of companies to pay their huge bonuses and dividends. Once the carcass is bled dry the ticking time bomb of excessive debt is left to go off in John Q's hands. The best Thieves are the best because they violate no laws, they use the law the same way a hoodlum uses a gun.
Yup, when is the public going to realize most of these pension plans are really nothing but damn good cushy jobs for the incompetent bastards running them?
i've been saying this all along. the private equity mark-to-model valuation is the biggest scam ever. just wait until the private equity industry blows up.