Mazinger G, a member of the unaccredited EduShyster Academy, here explains what happened in Rhode Island when a “reformer” took control of the state’s pension funds.
What happened when the state treasurer Gina Raimondo adopted a new strategy of investing the state’s pension funds into “alternative” investments?
“There has been much hullabaloo about Gina’s investing Rhode Island’s $7 billion state pension fund she manages into her *own* firm, just because it charges enormous fees and has no public track record. OK—so it’s true that in the finance industry it is considered somewhat unseemly to directly pocket the assets one is paid to manage. One is supposed to set up a far more discrete screen of consultants, firms, friends, relatives and a complex kickback structure. But that is exactly why people like Gina are such a breath of fresh air: innovative, disruptive and unconcerned with backward and fuddy-duddy notions like *self-dealing* and *conflict of interest.* If she didn’t have serious cred, would out-of-state hedge fund managers have spent big to sweep her into office? Besides there is proof that Raimondo’s cookie-jar-dippery has been perfectly ethical: there’s been no criminal investigation—at least so far!”
This post explains it all. Almost. All except why the governor and legislature sit idly by.
Diane Ravitch's blog 
It gets better. Gina is running for Governor in the next election cycle.
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The Orwellian transformation of the word “reform” – originally meaning “To make changes in something, typically a social, political or economic institutions, in order to improve it” – into a euphemism for class warfare, Overclass wealth extraction and looting, started in the Clinton administration, with so-called “Welfare Reform.”
So-called welfare reform meant the elimination of Aid to Families With Dependent Children (AFDC), which provided an income floor that no one could fall below. That floor no longer exists, and has accompanied the intense income polarization we have seen in recent decades, along with rising poverty rates, especially among children. Clinton did it in order to insure his re-election in the 1996 election and, along with NAFTA and the repeal of Glass-Steagall, it symbolized the neoliberal essence of so-called New Democrats.
When someone says they’re going to “reform” a necessary social or economic program, you should do two things: grab your wallet and a baseball bat.
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So what happens now?
Can it be fixed?
Will class warfare continue? Who will win? What will that look like in 5 years? 10 years? 20 years?
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Even Forbes Magazine had an article about it in it’s October 18th issue, “Rhode Island Public Pension Reform: Wall Street’s License to Steal.”
http://www.forbes.com/sites/edwardsiedle/2013/10/18rhode-island-public-pension-reform-wall-streets-license-to-steal/
(Not sure if this link works, and might only show part of it–the entire article printed is 11 pages. Edward “Ted” Siedle, the author, states at the end that the entire report is available & it’s 106 pages!
Also, we in Illinois are fighting for our pensions–our legislative leaders have just announced that they have a pension “reform” bill ready to pass at a special session this coming Tuesday, Dec. 3rd. There is a coalition of unions–“We are One,” which has planned a day of action on Monday. If you are in Illinois and are unaware, read Fred Klonsky’s Blog for Monday actions and for details of the pension busting bill.
Our retired teachers association–IL Retired Teachers Assn.–will present a legal challenge.
If this hasn’t yet come to your state, we hope it doesn’t, but watch for it. I might also mention that Ms. Raimondo had come to Illinois a year or so ago, speaking at a meeting for power brokers. She had QUITE an impact on a number of our legislators, giving them the wonderful ideas we are now seeing coming to fruition. Oh, and the article states that findings in regard to Ms. Raimondo’s er–shall we say–windfall–are being investigated by the S.E.C. Illinois unions and the 99% wish you no luck there, Gina.
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