armstrongeconomics.com / by Martin Armstrong / July 17, 2015
CalPERS (California Public Employees’ Retirement System) posted a profit of just 2.4% for its fiscal year (which ended on June 30) that was well below its 7.5% investment target. This is illustrating the crisis emerging in pensions. Even the pensions that were funded are now underfunded because they counted for so long on 8% bond yields. Interest rates were lowered to help banks and this set the stage for the next real crisis post-2015.75. You cannot manipulate interest rates to help banks without screwing someone else.