One of the most pernicious financial schemes of the post crisis era relates to a practice most Americans are entirely in the dark about, but may end up harming retirement plans down the line. I refer to the pervasive, incestuous and shady relationship between public pension fund managers, politicians and alternative asset firms (hedge funds and private equity).
Indeed, in the “new normal” of rigged financial markets, much of the investment industry no longer cares all that much about performance. The name of the game is to simply collect as massive an asset under management pile as possible and earn tremendous wealth by collecting fees risk-free. The enormous amount of “dumb money” residing at public pension funds provides the perfect mark, and pension managers as well as corrupt politicians and their appointed bureaucrats appear more than willing to comply.
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