Monday, May 30, 2011

Invest At Home

The California Public Employee Retirement System invests over $224 billion in taxpayer money to pay for the retirements of government employees. Seven years ago twenty percent of this money was invested in California. Now only ten percent of that money is invested in California.

The people who manage this money have an obligation to the fund to get the highest return on their investment as possible to keep the principle safe. As a result, ninety percent of their money is invested outside the state. What does this say about California? Even those who run the state know that California is a terrible place to invest your money. That California is getting worse, rather than getting better. In a few years, there may be no more investment in California at all.

I would really like to know how that ten percent is invested here. Is it invested in state issued bonds? Is it invested in companies that are owned in part by Californian politicians? What is it about these few companies that are good enough to be invested in by CAPERS compared to the other companies in the state? I think that all of this money should be invested in the USA and most of it should be invested in California; that’s what the SGT Says.

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