California Debt Higher Than Earlier Estimates, a Task Force Reports
“They also pointed out many of the same unpaid bills from previous years that the governor had brought to light, like $8 billion in delayed payments to schools and community colleges, and $250 million that was raided from a fund dedicated to transportation and treated as revenue.
The task force estimated that the burden of debt totaled at least $167 billion and [...]
* Public pensions have record assets in alternatives
* Alternatives are high-risk and have high fees
* Pensions still face high funding deficits
* Alternatives viewed as better than stocks and bonds
By Sam Forgione
NEW YORK, Aug 16 (Reuters) – Faced with growing obligations and shrinking returns, many of the largest U.S. public pensions have raised their exposure to alternative investments to record levels this year, despite ongoing criticism of the risks and costs.
Moody’s Places Spanish Banks on Review
Spanish Banking sector needs €26.17 billion in funds to meet European standards
Italian, Spanish yields rise as ratings threat looms (“but traders reported ECB buying in maturities up to 10 years”)
Nassau County’s Rating Cut on $1.2 Billion of Bonds by Fitch
Virginia’s public pension fund short $20 billion
Commerzbank may ask for state aid
Greek budget deficit widens, construction plunges
State Police Could See Hundreds Of Layoffs (Pa.)
EU Banks Selling ‘Crown Jewels’ [...]
by Mike “Mish” Shedlock, Global Economic Trend Analysis
The City of Costa Mesa, with a population over 100,000, is about to become 43% closer to the idealized goal of no city workers.
In a massive step in the right direction, Costa Mesa to lay off nearly half of city workforce, outsource services.
The city of Costa Mesa plans to lay off more than 200 employees and outsource 18 city services by the fall.
However, don’t look for a big crater, at least just yet, because this has started off with a whimper and not a bang.
Inquiring minds note the World’s Biggest Pension Fund May Sell Japan Bonds.
Japanâ€™s public pension fund, the worldâ€™s largest, said it may become a net seller of bonds to cover payments in the worldâ€™s most rapidly aging society.
The Government Pension Investment Fund, [...]
Via Pension Pulse.
Bertrand Marote of the Globe and Mail reports, Caisse posts 13.6% return:
The Caisse de dÃ©pÃ´t et placement du QuÃ©bec posted a robust 13.6-per-cent return on its investments last year, solidifying its ongoing recovery from a disastrous 2008 loss.
The results for 2010 beat the 11.25-per-cent median return of large pension funds in 2010 as estimated by RBC Dexia Investor Services [...]
1) Fed’s Lockhart: Quantitative easing must be big
“(Reuters) – Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday that further easing by the Fed has to be large enough to help boost demand, and purchases of $100 billion of securities a month would be a possibility.
“If we’re going to pursue another round of quantitative easing, it has to be a large enough number to [...]
1) Heavy in dollars, China warns of depreciation
“BEIJING, Sept 3 (Reuters) – China on Friday offered a rare glimpse into its foreign exchange reserves, confirming that they are overwhelmingly allocated in dollars, while a central banker said the mountain of cash could face depreciation risks.”
……………..1A) China PBOC Hu Says Developing Econs Face Reserve Asset Losses
2) Japan Pension Boosting Asset Sales to $48 Billion
“Sept. 3 (Bloomberg) — [...]
Calif (Reuters) – The board of Calpers, the biggest U.S. public pension fund, voted on Wednesday to ask California’s government for an additional $600 million in funding to bolster its finances.
The vote by the board of the $202 billion California Public Employees’ Retirement System comes as Governor Arnold Schwarzenegger and lawmakers face the arduous task of balancing the state government’s books, which requires closing a budget gap of more than [...]