Thursday, April 16, 2009

Note to Alaska Legislature: Before you Cast Criticism at Palin, You Might Want Look at Yourselves

You know there are some pretty damn stupid legislators and in their latest attempt to cast blame, they show how much they really don't know squat.

Take for example, the Alaska Permanent Fund Corporation.

GENERAL GROWTH PPTYS INC 0.00 3,800 $ 198,057 $ 4,902 $ ( 193,155)

This is just one company that the great minds at the PFC have invested in. To put it point blank, the PFC should have shifted all investments in properties over to energy stocks over 1 year ago (before they hit their high) and they didn't.

The commercial properties foreclosures are just starting to take effect.

General Growth files for bankruptcy protection

General Growth Properties Inc, the second-largest U.S. mall owner, filed for bankruptcy protection on Thursday in the biggest real estate failure in U.S. history.

It doesn't take a rocket scientist to know that commercial property investments are in trouble, but the people who do the investments, are like the captain on a sinking ship.

Sean Cockerham at the ADN has this: Finger pointing over investment losses in state budget reserve

Legislative leaders are asking Gov. Sarah Palin to move management of the state's main budget reserve out of her department of revenue and into the Alaska Permanent Fund Corporation.The press release sent out on this tonight by the state Senate Majority is subtitled "Huge Losses from Risky Investments Shake Confidence in Department of Revenue."

Who are the legislators in the legislature asking this?

The letter, signed by Senate President Gary Stevens (R-Kodiak), Speaker of the House Mike Chenault (R-Nikiski), along with the Co-Chairs of both the Senate and House Finance Committees – Senators Lyman Hoffman (D-Bethel) and Bert Stedman (R-Sitka), and Representatives Mike Hawker (R-Anchorage) and Bill Stoltze (R-Chugiak/Mat-Su) – communicated to the Governor that it “is imperative that the State’s limited cash reserves are protected and invested in the most responsible fiduciary manner possible.”

Old Eagle Eye Hawker is leading the charge. That will show you how smart Hawker is when it comes to economics.

Send money from one fund to another one that is losing tons of money. The commercial real estate investments in the PFC are going to get hit hard and Hawker wants to put the state's budget reserve in the PFC because what? He thinks they are doing a bang up job?.

That's right Hawker wants the stimulus money because he thinks it is going to help.

Wrong, it won't.

We haven't even seen the bottom yet on the residential side of foreclosures.

Foreclosures 46% higher in March than a year ago

The commercial side of real estate is still far behind but the foreclosures will start to add up soon.

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