Tuesday, December 28, 2010

Life in "Progress" City - Detroit edition

Feds may have to bail out Detroit for a second time — If the federal government decides, in its finite wisdom, that poorly run states and municipalities do not deserve to sink or swim based on the electoral acumen of their residents (or lack thereof), and chooses instead to “bail out” bankrupt members of the American federation, there will be some irony in the decision. In Detroit, two of the city’s public pensions are under investigation for “risky investing” that cost the two funds $480 million in three years. According to the Detroit Free Press, “many of the investments involved secretive middlemen, who pocketed hundreds of thousands of dollars, or were vetted by controversial investment adviser Adrian Anderson and his firm, North Point Advisors.” Anderson is currently under investigation by the SEC, but has not been charged. In the meantime, “the pensions are paying the legal bills of Anderson and a second adviser who scrutinized failed real estate deals.” Have you heard the one about the burglar who fell through the woman’s skylight and then demanded that she pay for his medical bills? This is sort of like that.

Read more: http://dailycaller.com/2010/12/27/thedc-morning-feds-may-have-to-bail-out-detroit-for-a-second-time/#ixzz19R7ukyJL

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