There is much to think about. California's pension funds are in trouble; in fact, California Public Employees Retirement System lost 60 billion last year. It is unsustainable.
Pension funds are irrevocably tied to real estate, and of course, now "owners" of the pensions know this.
They are wrapped up in "commercial real estate", buying and selling commercial properties,which include shopping malls, apartment complexes, and offices.
I've pulled all kinds of real facts on this, and it's scary. We have pension funds across the U.S. using "values" to real estate that may not accurately reflect CURRENT occupancy rate, or rents, including recent adjustments made as commercial tenants worldwide have pushed for rent reductions.
Commercial real estate is hidden in our pension funds, our banks, and still reflects optimism, and a rising economy. Without more consumption, consumer spending, commercial real estate remains a mystery to me, much as the housing boom did for years. Stuff isn't worth what they say. Or the risk is shown in a limited proportion in financials,with strong projections.
I do simple Floydian math and the numbers do not add up.
