Monday, January 05, 2009

CalPERS 2008: Down $60 Billion

A small stock rally in December brought the CalPERS fund back to $180 billion, thus trimming its 2008 losses to a cool $60 billion:


That's an annual loss of 25%. Seeing as how they just realized a 103% loss on its real-estate portfolio (no press release for some reason), how many other unrealized losses will be revealed in 2009? The $1 billion LandSource loss may just be the beginning...

4 comments :

Rob Dawg said...

It's only $60b because they are carrying massive unrealized losses in illiquid assets.

Max said...

Absolutely. Dawg, do you happen to know if the Governator is including the CalPERS 2009-2010 shortfall in his deficit projections? The makeup amount I saw floating around was ~5% of payroll, which adds about $1 billion to the deficit for the next fy, and possibly much more after that.

Rob Dawg said...

No, there is no current backfill provision in either the Governors or LAO scenarios. CalPERS recapitalization is not included much like the standing Federal hospital prison order $8b is also off budget.

Max said...

That's what I figured. So if the deficit projections are so unrealistic, Cali government will remain in a purely reactionary state, and specific policy outcomes will be impossible to predict.