Misbashing Christie On Pensions

“It’s a cheap political stunt based on shoddy, distorted reporting from an individual [David Sirota] who over and over again has been shown to be biased, willfully inaccurate, and just flat out wrong,”

NJ Governor Chris Christie spokesman Kevin Roberts responding to allegations in an AFL-CIO lawsuit

He may have some points – though not the ones I would make:

Like the double-dipping non-issue I do not see Chrisitie allegedly steering investment contracts to campaign donors as the state Retirement System’s biggest problem.  Remember, this is New Jersey.  Find me someone who has donated to a politician or party who does not expect (and get) payback of some sort.  How about a law firm where the lawyers get together each election cycle to give $30,000 to the campaigns of freeholders and somehow wind up with annual billings from that county of over $1 million.  That’s legal here so what’s the problem with hedge fund honchos working the system we have, though much less blatantly than DeCotiis according to Fortune Magazine?

Then there’s the issue of criticizing a rate of return of 16.9% (or 15.9% or 15.5%).  Imagine you get any one of those as an annual return in your own portfolio.  Are you complaining?  The question in New Jersey is whether those Alternative Investment assets being reported are really there.  I don’t think so.

Finally, there is this reality:

THE PLAN BARELY HAS 50% OF THE ASSETS NECESSARY TO ANNUITIZE ONLY (YES ONLY) THE RETIREES, WITH THE OTHER 475,000 PARTICIPANTS HAVING LESS THAN NOTHING.

Employ only investment advisers who have never donated to a political campaign (if you can find any) and get rid of all the double-dippers and you may have solved 1% of a $150 billion problem that will be a $250 billion problem in the years it will take your distracto-reforms to be implemented.

13 responses to this post.

  1. Posted by Anonymous on September 16, 2014 at 2:14 pm

    Awaiting the Know It All’s comments from Polar Express.

    Reply

    • Posted by Tough Love on September 16, 2014 at 2:56 pm

      No need to.

      John said it all …. read the RED, your pensions & benefits are doomed.

      Reply

      • Posted by Anonymous on September 16, 2014 at 6:16 pm

        Right on cue! She could not resist! I have been getting a pension for 20 years and will continue to get one until I die You on the other hand will be just fine ripping off the citizens of NJ 100s of thousands every year with your insurance company. Insurance the biggest scam oldest profession besides prostitution!

        Reply

    • Posted by Anonymous on September 16, 2014 at 6:17 pm

      Oh yeah forgot to mention she likes to put words in John mouth. She speak for him. She distorts the truth and then attributes it to him. She is the town drunkard

      Reply

  2. Posted by Endalimony4ever on September 16, 2014 at 2:16 pm

    I have said it before and I will say it again. The pensions are doomed. The Dems and Repubs have already made the deal. There is no will in Trenton to fix the problems so the only solution is to let the demise of the pensions play out. Then and only then will real reforms be enacted. Any of my friends who are collecting state pensions I am telling them to sock away as much as they can because it is very likely within the next 10 – 15 years the payments will be greatly reduced.

    Reply

  3. Posted by Anonymous on September 16, 2014 at 2:48 pm

    Ask employees of the former Birdsall Engineering firm about the impact of investigated political donations and public contracts . Mr. Grady, Chairman of the NJ Investment Council reported a return of 12%, which probably was 16% but 4% went to fees, management and investment. Mr. Grady makes money from NJ Alternate investments in his holdings through the Carlyle Group. He is a “mystery investors” as well as Mitt Romney.

    Reply

  4. Posted by Anonymous on September 16, 2014 at 3:46 pm

    Mr. Grady is a political advisor to CC, handpicked overseer by CC of the NJ Investment Council, a former executive of the Carlyle Group with holdings in the Carlyle Group as a mystery investor who profits from the administrative and investment fees paid by the NJ Division of Pensions and Benefits for alternate benefits NJABP. So CC steering contracts to the Carlyle Group and its subsidiaries would clearly violate the NJ Code of Ethics that covers paid and appointed public employees and officials. Mr Grady should have fully disclosed “mystery investor”, ties to the Carlyle Group which has contracts with NJ Dept of Investments. This information amongst cronies is safe out here in the public arena with lawsuits looming its a ethical/ legal matter that will play out in multiply agencies. The “industry standard” for financial advisement has been seriously distorted by all involved. The media walk of shame is coming.

    Reply

  5. Posted by hondo on September 16, 2014 at 9:57 pm

    N.J. The Soprano State no joke!! Why the feds aren’t investigating these allegations sounds like serious criminal activities?

    Reply

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