Labor

Public pensions all around the country like to play a clever little game that allows them to drastically understate the current value of their future liabilities and therefore pretend that their ponzi schemes are something other than insolvent frauds.  Of course, we're talking about the artificially high discount rates that pension boards consistently use to understate their net underfunding levels...a topic that we've written about frequently over the years.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Every day, the A-listers, those known around the world as household-name financial media royalty, are making public statements that if taken on the surface as actionable advice, are going to lead to unpleasant financial surprises.

Not for them. For you.

Is the largest public pension fund in the United States getting ready to dump about $50 billion worth of stocks?  According to a new note from Bloomberg, CalPERS' board is meeting for a workshop today in Sacramento to discuss asset allocations for the upcoming year which could include a doubling of the fund's bond allocation from 19% to 44% which would be funded with a massive $50 billion sell down of equities.

Poor Elon Musk just can't catch a break.  After admitting that Tesla hasn't yet figured out how to weld (a fairly critical task for auto OEMs), blowing through Model 3 production deadlines (which probably had something to do with rumors that 'the most advanced auto OEM in the world" was making components by hand), and firing 100's of employees, the embattled company now finds itself locked in yet another employee lawsuit...this time filed by over 100 black employees alleging racial discrimination.

Authored by Mike Shedlock via www.themaven.net/mishtalk,

Most defined benefit pension plans are nothing but Ponzi schemes. Plans are now unraveling because of demographics. An increasing number of retirees, needing untenable returns, are supported by fewer and fewer people putting money in the system. Democrats sponsored a bailout scheme. Will it pass?

Pension and Investments reports Sen. Sherrod Brown to Unveil Multiemployer Loan Program Legislation.