Posts Tagged ‘pension funds’

Ties Surface in Pension Chief’s Exit?

Ties Surface in Pension Chief’s Exit 

Courtesy of Leo Kolivakis

Via Pension Pulse.

Michael Syre of the Boston Globe reports, Pension chief says he’ll quit over pay:

Michael Travaglini, who as head of the state’s pension fund is among the highest-paid government employees in Massachusetts, plans to quit next month, citing as a reason efforts by legislators to limit what he and his staff can earn. 

In his six-year tenure as executive director, Massachusetts Pension Reserves Investment Management ran one of the top-rated public pension funds in the nation — until last year, when losses from the financial crisis made it one of the worst.

Prior to that downturn, the pension fund’s high performance earned Travaglini a $64,000 bonus in 2008, on top of his $322,000 salary. But now he cites the legislative backlash to that bonus system as a factor in his decision to leave June 11 and go to work for a Chicago investment firm.

“The issue of incentive compensation here is back on the front burner,’’ said Travaglini, who will formally announce his resignation June 1. “If you need the context for my decision, it’s an entirely personal one. I have a wife and three children, and I’m going to provide for them.’’

Under the bonus system, which Travaglini helped to create three years ago, he can make as much as 40 percent more if the pension fund exceeds certain investment benchmarks on a three-year basis. Bonuses for other pension fund employees range from 30 percent to 40 percent.

Travaglini said two legislative proposals would limit such bonuses, and thus make it harder to attract and retain talent to run the state’s $44 billion pension fund. One would limit the ability of state workers to earn more than the governor, whose annual salary is $143,000. Another would block bonuses for the years in which the fund lost money, regardless of how it performed against its benchmarks.

“Someone else can hang around for that, but it’s not going to be Mike Travaglini,’’ said Travaglini.

“Most people will say, ‘Good riddance. If you want to make more money, go do it in the private sector,’ and that’s what I’m going to do. But there’s a real threat to not being able to recruit and retain competent people here.’’

He added: “People can vote with their feet, and that’s


continue reading


Tags: , , ,




Climategate, UK Edition: Following the Money, All €4 Trillion of It

Climategate, UK Edition: Following the Money, All €4 Trillion of It

Courtesy of Octave Tockfield writing at Big Journalism and at the Tick Tock Blog  

There’s a question oft-posed by the proponents of global warming… or of “climate change,” as the new term of art has it, thus allowing warmists to claim both the snowstorm now blanketing America’s East Coast, as well as the melting of that snow, as evidence for their theory.

“To what end?” the warmists ask the skeptics.  Or, in the lingua franca of conspiracy theorists everywhere: “Cui bono, my friend, cui bono?”

Well, lots of people are benefiting from the practical implications of this theory. There’Nobel Laureate Al Gore for one, who is on track to become the first green billionaire:  

al-gore-thumbs-up

Then, at the UN there is the organization that shared Gore’s Nobel Prize, the IPCC, and its controversial director Dr. Rajendra Pachauri, a railway engineer with no back ground in climate science who lives what has been described as a lavish lifestyle in Delhi. Publicly he oversaw a report issued with the imprimatur of the UN that the Himalayan glaciers that feed India’s rivers will have melted by 2035. Privately he has been acting as a director or advisor to a score of companies, including Pegasus Capital Advisors, GlorOil, Toyota, and Deutsche Bank, as revealed by Christopher Booker of the Telegraphhere and here.

But hard-core warmists, intent on skepticizing the skeptics, invariably ask: “why would the media go along with this poppycock?”

Yes, why are the media so invested in the warming notion, given the countervailing evidence, the fact that the last climate theory (the global cooling scare of the 1970s) was so quickly disproven, and that it is self-evident that CO2, that most persecuted of molecules, is essential for life… for plant life.  (When an elephant sighs, a tree smiles.)

bbc-logo

Well, the BBC, a prime proponents of warming theory, or AGW, has heavily invested its pension fund in the theory, and thus have had a major non-Scientific reason for their bias.  As revealed this weekend in The Express:

The corporation is under investigation after being inundated with complaints that its editorial coverage of climate change is biased in favour of those who say it is a man-made phenomenon. The £8billion pension fund is likely to come under close scrutiny over its commitment to promote a low-carbon economy while


continue reading


Tags: , , , , ,




Prichard Alabama Files Bankruptcy Over Pensions; Wildcat Strike In Philadelphia; Oregon’s Financial Gamble

Prichard Alabama Files Bankruptcy Over Pensions; Wildcat Strike In Philadelphia; Oregon’s Financial Gamble

Courtesy of Mish 

Man falling as pedestal tumbles from beneath him

Inquiring minds are noting another city has been driven to bankruptcy because of pension promises that cannot possibly be met.

Please consider Prichard Alabama Files For Bankruptcy.

Prichard Mayor Ron Davis released the following statement Wednesday morning:

“I have looked at every opportunity available to obtain money to help fund the retirement plan for the City of Prichard. After careful review of all of our options, bankruptcy protection seems to be the only solution left at this time.

Over the past 50 years, the pension plan was amended by the Legislature more than fifteen times, and always the economic burden on the City was increased. This has been a long term problem that was unfortunately inherited by this administration.

After several lawsuits filed by pensioners, it has forced us to come to this decision, one that will protect the city and its residents. I hope that a solution can soon be found that will be fair to all. As Mayor, it is my duty to make sure that the City of Prichard continues to move forward by providing essential municipal services and to operate for the benefit of its citizens.”

Commuter Strike in Philadelphia

The unions in Philadelphia have not gotten the message there is no money and their over-bloated pension plans are unsustainable.

Proof of the above is in the Philly report SEPTA strike catches commuters off guard.
 

Tue, Nov. 3, 2009
Hundreds of thousands of commuters scrambled this morning to find a way to work or school after SEPTA’s largest union staged a surprise predawn strike, shutting down all subway, bus and trolley service in the city.

The walkout by Transport Workers Union Local 243, which began at 3 a.m. and caught commuters off guard, also affected Frontier Division buses in Bucks, Montgomery, and Chester counties.

The walkout even caught some members of the striking union unaware. Sly Wagner, a train operator for 17 years, showed up at the Fern Rock station ready to go to work. "I’m like everybody else," he said. "The only way I found out was when I went to the station and the gates were locked."

In the end, it was a difference over wages that sparked the walkout. Earlier Monday, transit


continue reading


Tags: , ,




City of Houston is Bankrupt (So are California, Oregon, and Pension Plans in General)

City of Houston is Bankrupt (So are California, Oregon, and Pension Plans in General)

Courtesy of Mish

Man being confronted by his shadow

Houston, we have a problem. We are bankrupt.

That is the finding of Bob Lemer, CPA, Retired Partner at Ernst & Young; Aubrey M. Farb, CPA, Retired Partner at Grant Thornton; and Tom Roberts, CPA, Retired Partner at Fitts Roberts.

Cover Letter

October 22, 2009
Name, Title and Address [see list below]
Subject: Finances of the City of Houston
Dear : [see list below]

Enclosed is our partial analysis of the very serious financial situation at the City of Houston. We would be derelict if we failed to share this financial analysis with you. This financial heads up will assist you in meeting your fiduciary responsibilities to Houston voters, taxpayers, readers, viewers or investors—as the case may be.

We feel a public discussion of the City’s financial situation is necessary and firmly believe that addressing the City’s financial condition is in the best interest of the Houston economy and Houston taxpayers. We believe the sooner the City of Houston addresses the financial shortfall the better.

Please bear in mind that the Houston City elections are on November 3, 2009, with early voting having commenced on October 19, 2009. Recent history has shown a large portion of voting occurs during early voting.

We trust that the attached article is of significant assistance to you.
We may be reached at boblemer@sbcglobal.net.

The above was sent to:

City of Houston—Incumbent Mayor, City Controller, and City Council Members
City of Houston—Non-Incumbent City Candidates
Greater Houston Partnership—Board Members
Houston Chronicle—Editorial Board Members
Houston TV Stations—CEOs
Houston Business Journal—Editor
Houston Community Newspapers-Editor
Houston Press-Editor
Municipal Bond Rating Agencies—CEOs
Wall Street Journal—Editor
Barron’s-Editor
Investor’s Business Daily-Editor
USA Today-Editor
Texas Monthly—Executive Editor
Deloitte & Touche LLP—Houston and New York

Executive Summary

City of Houston
Disturbing Financial Facts—October 2009
By: Bob Lemer, Aubrey M. Farb and Tom Roberts

The City of Houston is financially broke and it appears that the mayor who takes office in January 2010 may have to captain the City through bankruptcy procedures. The City’s unrestricted assets were $1.2 billion short of the already recorded corresponding liabilities these assets were needed to pay as of fiscal year end June


continue reading


Tags: , , , ,




 
 
 

Phil's Favorites

Big Pharma has failed: the antibiotic pipeline needs to be taken under public ownership

 

Big Pharma has failed: the antibiotic pipeline needs to be taken under public ownership

A.G. Sanders with penicillin extraction equipment. Image reproduced with permission of the Sir William Dunn School of Pathology, University of Oxford, Author provided

Courtesy of Claas Kirchhelle, University of Oxford; Adam Roberts, Liverpool School of Tropical Medicine, and Andrew Singer, ...



more from Ilene

Zero Hedge

Aramco Scraps US And London IPO Roadshows Amid Too Many "Uncertainties" 

Courtesy of ZeroHedge View original post here.

Saudi Aramco has withdrawn from IPO roadshows in the US and London after it's likely they don't want to disclose oil reserve totals to Western banks and regulators. 

Meanwhile, it's becoming a giant circle-jerk for the Saudis, the IPO is expected to list on the Tadawul exchange, while the Saudi Arabian Monetary Authority (SAMA) is expected to double the amount it would lend out to domestic "buyers" for IPO purchases, reported Bloomberg.  ...



more from Tyler

Kimble Charting Solutions

Dow Megaphone Breakout Continues, As It Tests 77-Year Breakout Level

Courtesy of Chris Kimble

I’ve heard many times over the past 39-years I’ve been in the financial services business that charts have memories? Is it true they do? Is it possible that they have very long-term memories?

This theory looks to be put to a big test by the chart above, which looks at the Dow Jones Industrial Index since 1910.

The Dow has spent the majority of the past 77-years, inside of rising channel (1). While inside of this channel, it looks to have created two very long-term megaphone patterns.

It broke above the first megaphone pattern in the early 1980s, where ...



more from Kimble C.S.

Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



more from Lee

The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



more from Tech. Traders

Insider Scoop

HP Rejects Xerox's Buyout Offer: Experts Debate What's Next

Courtesy of Benzinga

HP Inc. (NYSE: HPQ) rejected Xerox Holdings Corp (NYSE: XRX)'s $33-billion takeout offer Sunday, and experts are divided on what will occur next in the ongoing saga between two tech...



http://www.insidercow.com/ more from Insider

Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



more from Biotech

Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

more from Chart School

Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



more from Bitcoin

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>