Funds worth trillions of dollars start to plummet in value. Political pressure to be Ă˘â‚¬Ĺ“socially responsibleĂ˘â‚¬Âť distorts the market decisions of government-related enterprises, leading to risky investments. Investors who once considered their retirements safely protectedwake up to a sinking feeling of uncertainty and gloom.
Sound like the great mortgage-fueled financial crisis of 2008? Sure. But it also describes a calamity likely to hit as soon as 2009. State, local, and private pension plans covering millions of government employees and union workers with Ă˘â‚¬Ĺ“defined benefitĂ˘â‚¬Âť accounts are teetering on the brink of implosion, victims of both a sinking stock market and investment strategies influenced by political considerations.