Workers Are Funding The War On Themselves

Homepage | Forums | Main Forums | General Discussion | Workers Are Funding The War On Themselves

Viewing 2 reply threads
  • Author
    Posts
    • #433926
      eridani
      Participant
      • Total Posts: 10,623

      https://www.dailyposter.com/workers-are-funding-the-war-on-themselves/

      Perhaps funneling pension money into risky and opaque Wall Street schemes could be justified, if they had produced great returns for retirees. But while investment fees have been a jackpot for Wall Street firms, the returns haven’t been so fantastic for pensioners.

      In Pennsylvania, pension officials just admitted that they pumped about two thirds of the state retirement system’s assets into alternative investments. That strategy generated below-average returns for retirees, but it generated $4.3 billion worth of fees for Wall Street firms — which is more than the entire amount that workers paid into the fund in the same time period. In other words: All of the money pulled out of Pennsylvania public workers’ paychecks in the last four years that was supposed to go to their retirement savings was instead used to pay Wall Street firms’ fees — and in exchange, workers were given investment returns that did not beat a low-fee stock index fund.

      Next door in Ohio, a new forensic investigation by former Securities and Exchange Commission attorney Ted Siedle estimates that the state teachers’ pension fund is paying more than $460 million in fees every year, and alternative investments have wildly underperformed compared to their projections. Those fees are more than twice the amount the state saved in 2017 when Ohio officials halted cost-of-living increases that would allow pension benefits to keep up with inflation.

      Even more shocking: Siedle reports that the pension fund is likely paying big fees to private equity firms on uncommitted capital — which is money set aside to be invested but not yet deployed. He estimates that Ohio pensioners are annually forking over $143 million of such fees for investments that haven’t even been made. That’s enough to restore most of the cost-of-living cuts, but it is instead being used to pay investment firms. As Siedle puts it, the state is effectively “paying managers for doing nothing.”

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

    • #433947
      GZeusH
      Participant
      • Total Posts: 4,502

      Is there a financial Ivermectin to treat financial parasites?

      Corporate America consists of totalitarian entities laser-focused on short-term greed.

      My pronouns: vuestra merced, monsieur, господин, pana Bogu, πανίσχυρος Δίας

    • #433957
      PolecatHollerer
      Participant
      • Total Posts: 1,371

      AKA: PERFECTED Capitalism.

      If you give a man enough rope, it will be six inches too short. This is not the nature of rope- it is the nature of man.

Viewing 2 reply threads
  • You must be logged in to reply to this topic.