Speaking of California being boned…how much did CalPERS earn on its investments last year? A whopping 1.1%, my groovy babies. Yet they’re estimating an aggregate 7-8% annual yield on a 10 year average. Do you know what kind of return they’re going to have to get in future years to make up that shortfall? The kind of return they are extremely unlikely to get (or even get anywhere near). You can almost imagine with what quivering lip the public-sector workers read this sentence:
The 2011 performance was well below the estimated average annual return of 7.75% that the fund’s actuaries say is needed to meet current and future obligations to its members.
As Bob Uecker might say: juuuuust a bit outside!
via Ace of Spades HQ.