Calpers in recent weeks said it expects to report paper losses of 103% on its residential investments in the fiscal year ended June 30. That's because Calpers invested not only its own money, but billions of dollars of borrowed money that must be repaid even if the investment fails. In some deals, as much as 80% of the money invested by Calpers was borrowed. ...read the rest
Mish's Global Economic Trend Blog sums it up
The Calpers website fails to point out just just how it guarantees those benefits. The WSJ article spells it out nicely: "California's cities, towns and schools may have to cough up more money to cover the retirement and other benefits the fund provides for 1.6 million state workers."
What a scam.
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