naked capitalism

Anonymous says:

Hey Amigo,

Everyone wants to put this economic speedbump behind us and thus recognize that our fathers have sinned. We need to get onto the next leg of the journey and look at declining earnings and the impacts to GDP and the dollar. In the meantime, as losses continue to mount, unfold and inflate hyper-dimensionally, we will be able to look back and thank these type of Orange County gurus for contributing to our lack of well being.

Anonymous says:

Heres the real poop:

http://www.treasurer.ca.gov/cdiac/LAIG/guideline.pdf

Section 53601.7 (e)(6)(B) and 53635 (a)(3): These subdivisions (applicable to a local agency that is a county or a city and county, or that pools with other local agencies) have been revised to remove the requirement that eligible commercial paper may not represent more than 10 percent of the outstanding commercial paper of a single issuing corporation. Section 53601.7 (i): This subdivision has been revised to extend the sunset date of January 1, 2007 to January 1, 2011 for permissible investments under Section 53601.7. Sections 53601.8 and 53635.8: These new sections authorize, until January 1, 2012, theinvestment of up to 30 percent of a local agency’s surplus funds in certificates of deposit at a commercial bank, savings bank (savings and loan association), or credit union that uses a private sector entity that assists in the placement of certificates of deposit under specified conditions. Sections 53635(a)(2): This subdivision has been revised to state that no more than 10 percent of the total investments held by a local agency may be invested in any one issuer’s commercialpaper (formerly, this section stated that 10 percent of a local agency’s money may be invested in the outstanding commercial paper of any single issuer).

Government Code Sections 16429.1, 53601, 53601.6, 53601.7, 53601.8, 53635, 53635.2, 53638, and 53684 include a number of requirements on how and where public money may be invested. Figures 1 and 2 provide a synopsis of the permitted securities and conditions for using them. Prohibited investments include securities not listed in Figures 1 and 2, as well as inverse floaters, range notes, interest only strips derived from a pool of mortgages, and any security that could result in zero interest accrual2if held to maturity, as specified in Section 53601.6. Consensus recommendation: Include the list of permissible securities in the investment policy,and modify the list to meet the unique needs of the local agency. These modifications may include additional restrictions on the type and amount of specific authorized investments to reflect the risk tolerance of the agency.

e. No more than 30 percent of the agency’s money may be in Bankers’ Acceptances of any one commercialbank. f. “Select Agencies” are defined as a “city, a district, or other local agency that do[es] not pool money indeposits or investment with other local agencies, other than local agencies that have the same governing body.”g. No more than 10 percent of agency’s money may be invested in any one issuer’s commercial paper. h. Issuing corporation must be organized and operating with the U.S. and have assets in excess of$500,000,000.i. “Other Agencies” are counties, a city and county, or other local agency “that pools money in deposits orinvestments with other local agencies, including local agencies that have the same governing body.” Localagencies that pool exclusively with other local agencies that have the same governing body must adhere to the limits set for “Select Agencies,” above. j. No more than 10 percent of the of the agency’s money may be invested in the Commercial Paper of any one corporate issuer. k. No more than 30 percent of the agency’s total funds may be invested in CDs authorized under Sections53601.8, 53635.8, and 53601 (h) combined.

Anonymous says:

Much of this subprime pension crash is related to yield enhancement, thus we need to look at the inverse relationshipe of yield decreases, declines and deflation.

enhanced, enhancing
1. To improve or increase the value, quality or intensity of something (especially something already good).

Thesaurus: improve, embellish, better, enrich, expand, augment, enlarge, lift, raise, magnify, intensify, elevate, augment, boost, escalate, heighten, amplify; Antonym: decrease, minimize.