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California Public Worker's Pension



December 17, 2008 – Comments (15)

Mish has a doozy of an post, at least I think so.  California Public Employees' Retirement System lost 103% of its residential investments because of leverage. 

The numbers simply do not work here and they never will.  I suspect California will be having tax revolts soon.  


15 Comments – Post Your Own

#1) On December 17, 2008 at 6:08 AM, DemonDoug (30.95) wrote:

We already had one with Grey Davis.

There are so many things wrong with this state it's hard to count them up.

But it's December 17 and it's 55 degrees and going to be sunny, meanwhile the mountains 2 hours away are filled with snow - I would never, ever live anywhere else. :)

Oh yeah they are talking about the state and city of LA each raising sales taxes 1.5% on top of what there is now.  That would bring the effective sales tax to over 11%.  How ya like dem apples?

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#2) On December 17, 2008 at 6:10 AM, DemonDoug (30.95) wrote:

then again, 67% of my fellow angelenos voted for a .5% increase in sales tax just this past election.

I find myself increasingly in favor of Republican policy in this matter.  I swear it must be snowing in hell right now.

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#3) On December 17, 2008 at 10:49 AM, jegr5347 (< 20) wrote:


CNBC reported that commerical re lending has frozen with the exception of a few pockets of multi-fam/res.

Do you know how the total market for comm re mortgages compares to residential in terms of dollars? 


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#4) On December 17, 2008 at 11:55 AM, ByrneShill (84.83) wrote:

@DD: I hate you. So far this year we've had 4 feets of snow, have seen -30 degrees twice, and winter officially begins only in a week.

Our effective sales taxes is 13.5%. Our apples are not only frozen, but more taxed than your.

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#5) On December 17, 2008 at 12:10 PM, zygnoda (< 20) wrote:


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#6) On December 17, 2008 at 2:35 PM, DemonDoug (30.95) wrote:

you get taxed on food?  not even this hyper liberal state taxes basic food necessities.

sales tax on food like that is one of the most regressive forms of taxation that disproportionately effects the poor.

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#7) On December 17, 2008 at 4:31 PM, adventurerneil (21.83) wrote:

Pardon the newbie question, but what exactly does a tax revolt look like? People refusing to cough up in April?

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#8) On December 17, 2008 at 5:20 PM, dwot (29.67) wrote:

ByrneShill, same weather here.  I think DD just said that on purpose cause he knows I live on the 60th parallel...  This year snow every day.  I have to catch a flight on Friday so I sure hope the roads are good.


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#9) On December 17, 2008 at 5:35 PM, FourthAxis (< 20) wrote:

Doug, I didn't know you were in CA.  I'm in North County San Diego.  I don't know about there, but it's been raining for days here.

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#10) On December 18, 2008 at 12:32 AM, Option1307 (30.45) wrote:


This storm is so getting old...

The worst part is, people can't drive in the rain down here b/c they are not used to it. So everyone freaks out, traffic stops, and it takes me foreverrrrr to get anywhere... But hey, at least like Demon mentioned, it'll be sunny and warm the next 361 days after our "massive winter storm" passes. Woo hoo!

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#11) On December 18, 2008 at 12:45 AM, Option1307 (30.45) wrote:

I hadn't read Mish's post yet, but Alstry posted something similar to this yesterday...

It's all bad news for CA. And while they may be the biggest, many states are going to get crushed in a similar fashion. Lots of people are claimng that the worst is over in terms of the economy, I don't see how that is possible when stories like this are just coming out.

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#12) On December 18, 2008 at 10:52 AM, ByrneShill (84.83) wrote:

@DD: I was kidding. Our food isn't taxed. Except for chips/soda/unhealty food and prepared food. So if the store sells apples they ain't taxed, but if they cut the apples in 2 or in pieces then they are taxed.

Our sales tax code is so complicated that stores tax the same products at different rates. For a while there was taxes on tampons but not on diapers, so a few stores just started calling tampons diapers and stopped taxing them. Go figure.

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#13) On December 18, 2008 at 7:36 PM, VIS46 (34.79) wrote:

Hi Dwot:

            I know you are on the sidelines now regarding US market.At what level of S&P you will get into the market        

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#14) On December 19, 2008 at 2:24 AM, dwot (29.67) wrote:

Vis46, the market was getting into the range I was thinking about looking.  I tend to think I will sit out for a while yet.  There are an awful lot of bad things to still work through the economy.

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#15) On December 21, 2008 at 11:50 PM, SnoopyDancing (< 20) wrote:

If CA's financials stink, how are other areas looking? Between summer gas prices causing budget shortfalls and accounting rules requiring funding of pensions to catch up in value (G.A.S. 6?), can cities even issue more paper with rating agencies' opinions essentially worthless and bond insurers getting bailed out? How would a wave of municipal defaults ripple outward? 

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