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What Have I Been Saying About Pensions?

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April 26, 2008 – Comments (5)

I've been saying that I think pension plans are going to take a huge hit from the deleveraging and, well, best to just quote part of the article...

"A large California land partnership involving one of the largest U.S. pension funds has received a notice of default on a $1 billion loan after failing to meet certain terms of its lenders.

LandSource Communities Development LLC, a partnership that involves the California Public Employees' Retirement System, received the default notice Tuesday, amid talks to restructure $1.24 billion of debt. The partnership, which owns 15,000 acres in Southern California, had received an extension to meet its current loan terms, including a required payment, but the deadline expired on April 16. The default notice applies to about $1 billlion of the total debt."

Love to see FloridaBuilder comment on this one as those of us who read FB know that in the building industry land values can go to zero... 

I haven't read a lot of pensions and their investment strategies but I know that the Ontario Teacher's Pension Fund has credited one of the reasons they did so well was the range of investments which included real estate type holdings and the real estate holdings were credited for making a big difference on the performance.  I wonder how many pension funds copied that strategy late in the game... 

 

5 Comments – Post Your Own

#1) On April 26, 2008 at 2:10 AM, dwot (44.44) wrote:

Sigh... 

All government budgets seem to be in trouble...  This article is on the State bugdets, many falling short on their projections because of fired workers and reduced tax reciepts..

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#2) On April 26, 2008 at 2:19 AM, OldWeller (62.91) wrote:

And California already has high taxes ... somehow it will get worked out, but the money has to come from somewhere!

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#3) On April 26, 2008 at 8:38 AM, alstry (35.40) wrote:

Thrre high level Calpers exectutives resigned this week alone.  Guess why?

"I've been saying that I think pension plans are going to take a huge hit from the deleveraging..."

Don't you think America will take a big hit from deleveraging?

 

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#4) On April 26, 2008 at 10:49 AM, TMFHelical (98.83) wrote:

My father in law retired on a pension last year (IP).  My first question to him was - "can you buy insurance for your pension in case it fails".  He didn't know and I haven't seen such a product.  If it exists, I would certianly consider it.

Then again, I'm not on any pension plan.

zz

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#5) On April 26, 2008 at 7:07 PM, dwot (44.44) wrote:

alstry, yeah, I think America will take a big hit from deleveraging as it is highly leveraged.

HelicalZz, I don't trust insurance companies to honor their promises. 

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