Risking Public Money
The July issue of Bloomberg Markets has a great story by David Evans describing how Wall Street is selling risky investments to public pension funds. Evans' "The Poison in your Pension" details how public funds such as the California Public Employees' Retirement System, the nation's largest, are trying to boost their returns through collateralized debt obligations, known in the industry as "toxic waste" because of their vulnerability. The beauty of this story is that it makes complex financial deals comprehensible while also showing their impact on the public. Evans includes this killer quote from the treasurer of Orange County, California: "The beauty of Wall Street is they put lipstick on a pig." www.bloomberg.com/news/marketsmag/pensions.pdf