We have noticed that the PFD
Board has just approved a new policy of investing in Hedge Funds.
Remember all the recent problems with Hedge Fund investments and
resulting loss to investors?
We suspect that the Board is
once again assuming this ignorant public is not aware of what they
can do in furthering the acceleration of depletion of the permanent
fund through hedge funds if the public can be stressed into
accepting the POMV strategy.
Hedge Fund investing is a bet. A bet
that that over inflates the value of an investment. If it doesn't go
well by a certain date the results are disastrous. What this
reckless type of investment accomplishes is inflation of investment
value reporting up front because the losses can't be reported until
the maturity date. And indeed many a broker who has fallen into this
casino type situation will tell you it can be destructive beyond
repair.
These investments can be hemorrhaging
losses but market value as reported looks fantastic. In other words
the value looks great on paper and POMV provides the acceleration
tool for government to take money that isn't there and we as
citizens take up the slack in the end as nothing is left and what a
surprise to all.
Supposedly, this is pretty clever on
behalf of the PFD Board in it's fiduciary responsibility to be
protecting our interest as the owners while affording this
accelerated withdrawal mechanism for the Legislature and Governor at
the same time.
It seems apparent that even though
the Board may not be convinced that POMV is going to be an immediate
victory they are laying the groundwork through their investment
policy decision that once it is they are going to provide the tool
for the legislature to rape it in the most expedient and brutal
method possible.
Editor provided related links:
Shows direction the
Permanent Fund Board is going:
http://www.apfc.org/library/press_story.cfm?story=3%2F04%20meeting%20summary&s=1
This bill is the mechanism that will allow increased investment in
hedge funds:
http://www.legis.state.ak.us/basis/get_bill_text.asp?hsid=SB0326B&session=23
Some interesting background information on hedge funds:
http://www.businessweek.com/2001/01_09/b3721001.htm
While not all bad, hedge funds are
highly speculative in nature (contributed to bankruptcy of several
large countries), and potential for loss is great.
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