Government Unions Benefit from the Asset Bubble that Harms Workers

By Edward Ring
Earlier this month the California Policy Center released a study that provided additional evidence that the U.S. stock indexes are overvalued by approximately 50%, along with calculations showing the impact of a major downward correction on the solvency of California’s state and local government pension systems. Stocks are now at unsustainable bubble valuations. Not covered...

TAGS: asset bubble, CalPERS, low interest rates, Wall Street corruption

The Ponzification of the World

By Martin Hutchinson
Arrests have been made in China over a $7.6 billion Ponzi scheme involving a P2P (person-to-person, without the intervention of a bank) lender. My first response was: P2P lending in the Chinese banking system: what could possibly go wrong? My second, more thoughtful, insight is that distinguishing out-and-out Ponzi schemes from the world economy as...

TAGS: low interest rates

Public Pension Solvency Requires Asset Bubbles

By Edward Ring
The title of this post expresses what is probably the greatest example of a monstrous hypocrisy – that public employee unions, and the pension funds they control, are supposedly helping the American economy, and protecting the American people from “the bankers.” Overpriced “bubble” assets caused by banks offering low interest rates hurt ordinary working people...

TAGS: American Federation of Teachers, CalPERS, CalSTRS, low interest rates, pension funds, Public sector pensions