New York Subway pension loses over $300 million in collapsed hedge fund

[zdreg]

Conduct a séance with Margaret Thatcher, of blessed memory. She knows.

"- Margaret Thatcher once said that "The trouble with Socialism is that eventually you run out of other people's money."

 

[SunTrader]

Muni bonds are showing some signs of stress but there is an expectation of some sort of a bailout or (God forbid) a tax hike.

It’s a global consensus that BDB has been the worst mayor this city has ever seen and most of this financial trouble can be directly attributed to his lack of management skills and idiotic policy decisions. While I am very much on the liberal side, I’d be happy to see Guliani as a mayor again and I know a lot of other diehard democrats that share this sentiment.

My view from 1300 miles away is the same. Except Giuliani was once the right guy at the right time ... in the past. Now he is a past his time vampire bat babbling deliriously in defense of Chumpie. NYC does not need another Dem though. Tough choices need to be made and NYC Dems in modern times have never been known to have the fortitude for it. What Rep though?

 

[Same Lazy Element]

My view from 1300 miles away is the same. Except Giuliani was once the right guy at the right time ... in the past. Now he is a past his time vampire bat babbling deliriously in defense of Chumpie. NYC does not need another Dem though. Tough choices need to be made and NYC Dems in modern times have never been known to have the fortitude for it. What Rep though?

I honestly don't think it's about the party, but rather we need someone who has serious managerial experience and understands that money does not grow on trees. Personally, I'd love for Ray McGuire to run - he's very Bloomberg-like and might be exactly what this city needs. Unfortunately, I doubt he will be supported by either Democrats (too rich) nor by the Republicans (too black).

 

[ElectricSavant]

Can Citys go bankrupt? I remember Orange County went bankrupt in California some decades ago.

$300 million is peanuts to New York City

A recent actuarial report issued by New York City's controller shows the city's unfunded other post-employment benefits (OPEB) liability rose by $9.3 billion to $107.8 billion during the 2019 fiscal year.Jan 6, 2020

Actually not sure what number to believe

May 16, 2019

New York City is in dire straits. You might not know it, but the city is staring bankruptcy in the face. Stakeholders are scrambling for answers to this issue, but there’s been little talk about one of the main causes of the city’s growing debt: public employee pensions. As of today, nearly 75 percent of the city’s $197.8 billion deficit is due to pension and other retirement liabilities.

Regardless it is a very big number that no one/no one/ is doing anything about.

Everyone assumes that the Federal government will help them out.

 

[mlawson71]

Wow. I have no words for this. Truly.

 

[SunTrader]

Can Citys go bankrupt? I remember Orange County went bankrupt in California some decades ago.

Yup cities, counties, states. Just not the fed gubmint because the Feds have the most powerful military on earth (faghgetaboutit Russia or China pfft). We just lost a F35B Joint Strike Fighter which "retails" at $100+ million. Feds never get wholesale thanks to revolving door DC to Defense Contractor Consultancy, that ummm Swamp Drainer Drumpf was supposed to put an end to. I crack myself sometimes. No biggy. Print more phony baloney dollars. Who's gonna stop us?

 

[JSOP]

how bad can a hf manager be?! 97% LOSSES. wtf...

https://finance.yahoo.com/m/a741950a-cc06-3988-8d73-a8c02a250f4b/new-york-subway-pension-loses.html

" The MTA joins a list of woebegone pensions suing German financial giant Allianz over its “Structured Alpha” funds, which collapsed in the market turmoil earlier this year wiping out 97%—yes, really—of investors' capital."

Maybe these pension funds should consider GIC's or Term Deposits instead of those actively managed hedge funds?