Wake Up America to the Wall Street Scam Against California There is no question that there have been abuses of pension systems, mainly through the use of rosy scenarios as to future earnings through pension investments. However, there is an even greater scam perpetuated by Wall Street and the desire of this evil force of crony capitalist greed to limit the rights of pension holders in California. But regardless of what the Wall Street firms want, it is part of California law that pension funds get top priority in any bankruptcy proceeding. It is the LAW. Public Pensions cannot be touched. That is the point. The pension funds then become first creditors in line if obligations to them are outstanding. However, there has been a serious attack on California's "mismanagement" and on California's pension system and it has come from Wall Street. Wall Street wants to be first creditor in line, or limit the claims of Calpers in bankruptcy court.
In the case of San Bernardino and Stockton, Calpers has refused to cooperate with the bondholders. The bondholders knew the law. They are trying to get unscrupulous judges to water down and tamper with the law. Whatever you think of public pensions, be advised that Wall Street wants to come first. And it is not just with pensions. Did you know that if you have money in bank of America, the Fed has placed toxic derivatives totaling over 60 trillion dollars as first in line for FDIC insurance if Bank of America fails? Don't think this is just about public pensions screwing the public. It is about Wall Street screwing the rest of us. In fact, Wall Street wants a piece of your government in the form of payments. Some of these are quite hurtful, including failed bets on Derivatives. I wrote about those issues here. This has become a battle of Wall Street versus main street. Any effort to get you to see otherwise is because Wall Street is paying main street media (msm) to get you to be on its side. Wake up America.Archive Link