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Week of March 29, 2009 - April 4, 2009

The Terrible Temptation of Money


I was astonished that my organization went heavy into the market with their pension funds in the 80s, only to see it tank More recently they have entered negative-equity world with our endowment, which invokes a call covenant concerning a bond issue. That is, bondholders can ask to cash in unless we pay large penalties.

Now we hear that the ultimate guarantor of pensions systems went all in at the idiotic peak of the market, leaving behind the conservative bonds it held. I have been arguing for decades now that, for certain funds, security absolutely trumps yield. Apparently the government thought that, too, until Bush appointee Charles Millard helped some friends on Wall Street. Any bets on an insider trading scandal brewing up?

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« March 22, 2009 - March 28, 2009 | Home | April 19, 2009 - April 25, 2009 »

Tom Wright

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  • Favorite Books "Freedom Evolves", Daniel Dennett
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Musician, Chicago Symphony; photographer, www.digitalskyllc.com

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