CC Councils blowing gazillions on subprime CDOs

[FFC Mariner]

Dibo, you must have a lot of super lol - its millions in an investment that most professional firms wouldnt (didnt/dont) touch with a 20 foot pole.

Point I was making is that the 2nd most unnecessary layer of our ridiculous system will need to cut services, raise revenue to cover mistakes they made (out of greed and laziness) with other peoples money.

 

[dibo]

Dibo, you must have a lot of super lol - its millions in an investment that most professional firms wouldnt (didnt/dont) touch with a 20 foot pole.

Point I was making is that the 2nd most unnecessary layer of our ridiculous system will need to cut services, raise revenue to cover mistakes they made (out of greed and laziness) with other peoples money.

don't get me wrong - i'm all for abolishing state and local government and replacing them with regional governments (large enough to be professional but small enough to be accountable).

my point was that proportionally i doubt council did any worse than your average person with a super fund (that isn't a defined benefit public sector fund... *whistles* ).

 

[FFC Mariner]

Sadly mate, the average persons super fund (assume a balanced fund) will average about 7%pa over a normal market cycle (6 years in Oz) - the investments that local councils made managed to destroy all of the capital - they have no way of recovering the money unlike a super fund that will just move in line with normal market cycles.

 

[dibo]

Sadly mate, the average persons super fund (assume a balanced fund) will average about 7%pa over a normal market cycle (6 years in Oz) - the investments that local councils made managed to destroy all of the capital - they have no way of recovering the money unlike a super fund that will just move in line with normal market cycles.

ooh! salacious! source?

 

[FFC Mariner]

Company called Grange Securities (subs of Lehman Brothers) - sold CDO's to councils and its all goooooooooooooooone.

http://www.businessspectator.com.au/bs.nsf/Article/Local-councils-lose-investment-power-DBQL5

 

[dibo]

funny, when i searched for 'cdo "gosford city council"', this was the first result:

$3 million sub-prime investment returned to Council
Date:
06-11-2008 04:00 PM
Media Release:

Gosford City Council's $3 million Federation CDO investment has been returned in full.

The principal $3 million was returned to Council's bank account on Thursday 30 October 2008.  At the same time, Council received full payment of accrued interest on this investment.  For the life of this investment Council received 8.1192% return per annum.

Mayor of Gosford City, Clr Holstein said, "Council no longer has any direct investment in the US sub-prime mortgage market.

"In the worldwide financial turmoil currently being experienced, this is very positive news for Council."

Clr Holstein reiterated that all of Council's investments have been made in accordance with the Local Government Act 1993 and the Minister's Order on Investments.

"Council is continuing to monitor the position of all other investments in light of the current economic climate," he added.

 

[FFC Mariner]

all other investments may be the clue ?

 

[dibo]

all other investments may be the clue ?

or maybe this is:

"Council no longer has any direct investment in the US sub-prime mortgage market."

 

[Jesus]

all other investments may be the clue ?

or maybe this is:

"Council no longer has any direct investment in the US sub-prime mortgage market."

From what i read GCC was the biggest loser of all nsw councils from subprime, to the tune of 30mil. Wyong not far behind.

Regardless. No stopping/parking sign and you park, you are havin a laff if you think you dont deserve the fine. There is free parking everywhere. Especially with such a small turn out