The Market Ticker - Commentary on The Capital Markets
2008-05-01 13:12 by Karl Denninger , 21 references Ignore this thread
I don't often post in "all caps."

This morning I had seen a third "notice" that there are widespread "critical shortfalls" in Union Pension Funds.

I put up a short video on the topic and am now getting emails telling me that this is more widespread than has been reported - additional funds have been sending these deficiency notices out.

Let me first state my bias up front - I am generally not very positive on Labor Unions, for the simple reason that I don't believe they do a very good job of protecting worker rights and finding solutions that work for both labor and management. There is also a long history of outright corruption. However, the counterbalance to this is that in the early 1900s there was clear corruption on the other side and Unions were one of the counterbalancing points that helped right that, so its not a "clear" win or lose.

With that out of the way, let me explain to you what, if you're part of organized labor, you need to do right now. Today.

You need to find out what your Unions' Pension status is as of this time. ERISA requires them to notify you on some sort of schedule but you have a right to know at the present time. Pick up the phone and find out where your Pension fund stands and what "unrealized" losses may be embedded in it. Ask for the answer in writing.

If you have received any sort of ERISA-mandated "deficiency" or "warning" notice, or receive one in the future, you need to act right now.

Specifically, any Union that has had this happen needs to get the membership together today and authorize a general strike until the Wall Street fraudsters who played their Ponzi finance games return all of your lost funds to you.

No ifs, ands, buts or maybes.

Yes, I am potentially calling for the Longshoremen to strike every port in the United States.

I am potentially calling for the Teamsters to strike.

I am potentially calling for every State Employee covered by CALPERS to strike.

You need to understand that under the law the PBGC can and will come in and seize these Pension funds if the deficiencies cannot be corrected. Once that happens your pensions will be permanently cut down to PBGC-payable levels.

Go ask the Airline Pilots how they liked what happened to their pensions when their funds were "transferred" to the PBGC!

You are at risk of losing half or more of your retirement income on a permanent basis.

If your pension fund was sold supposedly-safe securities that in truth are not (like, for example, mortgage-backed CDOs and bonds) without the fact that these loans were largely comprised of "liar loans" being disclosed up front to your pension-fund managers, you should not be the ones who eat those losses.

This is not an investment loss, it is fraud!

The banks that sold them to you, and those banks' management, should be the ones who eat it.

You can either act now or you can watch your retirement be shredded.

There is hundreds of billions of dollars of fraud embedded in these securities and if your union representatives do not act right now by the time you get the "bad results" all the money that is possible to recover will be GONE.

Here is a short video on the topic. Act now or you are likely to wind up working at WalMart handing out shopping carts for your "retirement."

If we lived in France you'd already see thousands of demonstrators in the streets and every port, train and other unionized labor body would be on general strike, with their employees pounding the pavement to demand redress.

You should not be the ones to eat these losses but if you do not step up and act NOW you will be!

Do our Unions have any "spunk" left, or are you, the workers, represented by sheep?

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