Even more bad news for Kentucky Retirement Systems in the Wall Street Journal:
This is a basic almost primal question that may seem simple, but is not.
In our investment structure all risk is measured off the risk less base which is the U.S. Treasury. All fixed-income investments trade at a spread over Treasurys.
There is a continuous 24-hour media circus talking about how the U.S. government is bankrupt or is going bankrupt; this mindless political rhetoric has people so confused that it has allowed insurance companies to manipulate the situation.
Our national debt and deficits are serious issues, but the U.S. government’s options, which include the ability to increase our population by immigration, and of course the ability to print money, put it in a different risk class. However, state governments without this ability to print money, could possibly be in real immediate danger — especially those like Illinois and Kentucky who have funded deficits for a decade by back door borrowings from their pensions.
A recent TV ad features a daughter asking her retired Father how he can feel so financially secure about his retirement. He replied that his annuity “guarantees us an income whether or not Social Security is all there or not.”
Click here to read the rest from WSJ’s Market Watch from Chris Tobe.
And then remind yourself that Steve Beshear’s band of merry money sucks have spent more than a year trashing Tobe for daring speak out about corruption at KRS.