It’s a basic form of storytelling, used in countless books and movies: Two people, in similar circumstances, confronted by difficult choices. One does what is right, even if it seems like the harder choice. He fights through the many challenges, has moments of self-doubt and worry, before ultimately being rewarded. The other takes the easy way out. For a brief time, he appears to be ahead, before the shortcut is discovered, and ultimately receives the deserved comeuppance.
It’s a narrative technique as old as the Bible. It’s a staple of rom-coms, sci-fi flicks and adventure movies.
The investment version of this in playing out today in California in two different pension funds for public employees. There is little doubt how this movie is going to end.
The antihero in this story are the gamblers who run the retirement portfolio for the San Diego County public-pension system. Why gamblers? Because of this, as reported by San Diego Union-Tribune:
In April, pension board members unanimously approved a new investment strategy that dramatically increases use of “leverage,” a form of borrowing…. The county’s remarkably transparent goal is to raise the risk of losses in hopes of lifting returns, because the government and its workers haven’t saved enough to fully fund checks promised to retirees in the future.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
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