Rhode Island, Warren Buffett, Cftc discussed on Rich Dad Radio Show
CFTC the theater PC is like the FD, but they regulate commodity commodities. Trading commodities markets and the SEC regulates the securities markets, most mutual funds, for example, invest in commodity and stocks most mutual funds to futures options, whatever as well as investing stocks, but that was the biggest whistleblower ward in history last that I received total seventy eight million when I went to Rhode Island a few years ago actually six years ago in two thousand thirteen the new treasure vote island. It was very popular democrat said she had found a way to solve the nation's retirement price and the way to do that with to get workers to greet to accept less benefits than they imprompt. So she sees tempted to cut the benefits they went to court the court. Agreed. She could do this so workers benefits in Rhode Island were slashed. And by three percent. The cost of the cost of living adjustment was eliminate. So that was part of the story was she was going to cut benefits what she didn't tell workers and taxpayers was she was going to gamble the money and hedge fund so she ended up cutting workers benefits by three percents and paying Wall Street four percents. Hedge funds charge fees of two percent plus twenty percent of gains which amounts to about four percent. So it was a sort of fly pan by hand where all she said that like cutting workers benefits, the pension would be restored it less money would be going out. But what she didn't tell them was that by paying Wall Street. More pension would actually be worse off. And that's what happened. That's what I suppose Rhode Island in two thousand thirteen. That this was not an austerity program. This was not pension reform. This was basically taking three percents from workers to give Wall Street, folks. Well, when you think about the mindset that were done something like that. And by the way, did Wall Street payoff on that four. Did it make sense? I mean, if if they returned twenty percent, it'd be great, but you paying them four percent and you losing money. That's a whole nother story. Terribly has predicted NS at the at the time in two thousand thirteen Warren Buffett had worn pensions all over the country, not to invest in hedge funds. I don't know if your listeners now, but Warren Buffett very publicly bets a group of hedge funds million dollars that they would underperformed the stock market over the next ten years, and they were foolish enough to take that against Warren Buffett, and you can you readers to can look online. The results of the of the bet word that buffet handily won. They heads funds dramatically underperformed, the stock market and in two thousand thirteen in Rhode Island. The pension was told do not do this by investment luminaries like Warren Buffett, John Bogle and pets, Adele. But they went ahead with the gamble. Ended up losing five hundred million dollars in the first eight years. So how does that affect the pensioner in Rhode Island was well them? Well, I mean what it means is that their benefits were cut to supposedly make the pension more sustainable, but then the people right? A pension gamble for the pensions actually worse off or certainly no better off. So they took a pay cut for nothing. She benefits were cut, and they got and the pension ended up losing far more than they than the pension saved by cutting workers out of so did you hear this latest thing?.