Tuesday, April 11, 2006

America's Finest City errr Pension Plan

Welcome to San Diego. Surf, Sun, Sand... how about a $1.4 billion dollar pension deficit? Not anything you'll read in tourist brochures for this so-called America's Finest City. So how does this happen? Well, in the late 1990s, local politicians decide to vote themselves an increase in the pension plans for city employees including themselves; problem is, the numbers didn't quite add-up. Now, libraries are cutting their hours short, city services are being cut, police officers are changing municipalities. The feds got involved and brought charges against some of our elected "representatives".

unbelievably, those same officials that put the city in the hole want taxpayers to pay for their defense. Are they kidding?

People tend to think of San Diego as this laid back city and in a lot of ways, most citizens are laid-back, apathetic to local politics. This undoubtedly contributes to the sheer blatant stealing that politicians feel they can get away with.

This sort of cheating relates to how I never think an individual investor is on the same playing field as others in the bizznness (i.e. institutional investors, corporations, insiders). These politicians have inside access; namely the ability to increase their own pensions. Similarly, corporations and institutional investors have access to investment/business information that the rest of us small fries can only dream about. Once again, more reason to diversify broadly, choose low cost funds, and track indexes (i.e. see vanguard).

Let's hope those darn pandas at the SD Zoo can draw enough tourists into the area to help get the city out of this mess.
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Blogger inagm said...

ahhh SD, the indebted city. No wonder they charge ridiculous traffic ticket prices.

11:10 PM, April 11, 2006  

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