Sunday, July 21, 2013 – 11:00 a.m.
Here’s some news flowing across the transom last week. In cased you missed it!
Detroit files bankruptcy
Yes, this time it’s Detriot. That’s a city located in the state of Michigan. For those that didn’t know!
The motor city fled for Chapter 9 municipal bankrupcty last week. Even though a state judge, also a democratic-appointee, ruled the filing illegal, expect a federal bankruptcy judge to have the final say here.
Detriot, the largest city to file bankruptcy, has more than $11 billion in debts. The news also rattled the muni bond market last week.
Will Dem’s blow it in AD-52?
Yes, there could be no democrat candidate making the runoff in Tuesday’s special election in the 52nd State Assembly District.
The California Democratic Party has spent so much time focusing on Republican-turned-Independent Candidate Paul Leon that they forgot about Republican Dorothy Pineda.
While Dem’s have been bashing Leon as a Republican-in-disguise, Pineda is climbing in polling. The lack of focus may create a Leon-Pineda runoff, and leave Democrat Freddie Rodriguez out in the proverbial cold.
Anything is possible in the expected low-turnout election.
Calpers and Calstrs beat investment benchmark for 2012-13 fiscal year
Two of the world’s largest pension funds beat their investment return benchmarks in their last fiscal year.
Some welcome news for a change!
The California Public Employees Retirement System, and the California State Teachers Retirement System, each returned 12.5% and 13.8% respectively. Both funds have a set benchmark, currently at 7.5%, necessary to maintain their respective systems long-term solvency.
Calpers asset value as of June 30, 2013, was at $257.8 billion. Calstrs was reportedly at $165.8 billion.
Federal Resrve caught between a rock and hard spot!
Federal Reserve Chairman Ben Bernanke finally admitted, in testimony to Congress last week, that any near-term reduction in its $85 billion per-month bond buying program would lilely result in a steep drop in economic activity.
Like it doesn’t take a rocket scientist to figure this one out!
It’s known as letting air out of a balloon.