The crony-capitalism continues. The article below breaks down the newly leaked information from SEC whistleblower Chris Tobe to Pando. Tobe has written a book named, “Kentucky Fried Pensions”, about the state of Kentucky’s wrecked public pension system. The Kentucky Retirement Systems (KRS) has made deals with the investment firm, Blackstone.
Blackstone is more popularly known for buying up homes around the country in “cash-only” deals and placing middle-class Americans outside the real estate purchase market, creating a new renter-generation. Blackstone also is a “major financial backer” of who else? Mitch McConnell.
The article expands on the ground-breaking evidence:
An increasing number of those pension funds are being stealthily diverted into high-fee, high-risk “alternative investments” that deliver spectacular rewards for the Wall Street firms paid to manage them – but not such great returns for pensioners and taxpayers.
Citing data from the National Association of State Retirement Administrators, Al Jazeera America recently reported that “the average portion of pension dollars devoted to real estate and alternative investments has more than tripled over the last 12 years, growing from 7 percent to around 22 percent today.” With public pensions now reporting $3 trillion in total assets, that’s up to $660 billion of public money in these high-fee, high-risk investments.
And yet… despite the fact that they deal with the expenditure of taxpayer money, the agreements between public pension systems and alternative investment firms are almost entirely secret.