Mad Scientist
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- Sep 15, 2008
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Because of their discredited supply side theories. Risky risky risky!
Taxpayers on the hook for risky investments in state pension systems Illinois Policy An independent government watchdog
Taxpayers on the hook for risky investments in state pension systems Illinois Policy An independent government watchdog
Politicians have made a mess of Illinois’ finances, in large part through their mismanagement of state and local pension systems. With most of the state’s pension funds heading toward insolvency, it’s no surprise that politicians’ actions – from using government-worker retirements as slush funds, to trading retirement benefits in exchange for union support, to taking on too much investment risk – are being so highly criticized.
The Illinois Teachers’ Retirement System, for example, has investments of nearly $1.5 billion in junk bonds and unrated securities. It holds nearly $4.7 billion in real estate. And that’s on top of the more than $17 billion it has invested in U.S. and international equities. Bets also include derivatives, foreign currencies and other complex investment strategies.