Your Pension/Retirement Accounts Are GONE - If They Are In Mortgage Back Securities

This message is for anyone with private and public pension account and retirement accounts.

If you have your pension/retirement accounts in any mutual funds that contain mortgage backed securities - GET OUT NOW.

Please check to see what your mututal funds investments include. Most people have no idea.

You see, the public/consumer have been defrauded, not only by the investment houses, but also by the ratings agencies.

This is all about the mortgage backed securities that were bundled and sold on wall street to the investment houses and they in turn sold these to the public.

Many investors are people like you, firemen, policemen, teachers, and the regular "joe".

As most of us know, these investments are blowing up - but the losses are NOT YET SHOWING on the books because they investment houses are hiding them from you.

Nov 7 (Reuters) - Morgan Stanley said a group of investors had accused it of selling defective mortgage bonds contained in more than $6 billion of trusts, signaling that it may face litigation over its involvement.

Gibbs & Bruns, a law firm representing the investors, alleged in a letter received on Oct. 18 that a large number of residential mortgage-backed securities issued by trusts that the bank sponsored or underwrote was based on false or fraudulent information, the bank said in its quarterly report..

Understand that as housing prices continue to fall and more homes go into foreclosure the losses on these mortgage backed investements will likely be around 80% as these mortage backed securites IMPLODE. It's basically why all the governments in the world are bankrupt and this is where your retirement money is invested.

The S.E.C. has already sued Goldman Sachs for its disclosures related to a fairly esoteric derivative security, and that case may provide a template for the types of case that the commission may pursue for banks that it accuses of misleading mortgage-backed securities investors — even sophisticated ones — about the risks from foreclosure problems and obligations to take back loans that were improperly issued.

Source

The lawsuits are piling up with Pension accounts suing the Investor houses.

Government Sues Morgan Stanley over Pension Losses.

The lawsuit, filed by Pension Benefit Guaranty Corp in federal appeals court, accuses Morgan Stanley Investment Management of breaching its fiduciary duty in handling St. Vincent Catholic Medical Centers Retirement Plan's fixed income assets.

"MSIM irresponsibly concentrated approximately 50% of the Plan's fixed-income assets in the single asset class of mortgage-backed securities, even as MSIM became aware in 2007 and 2008 of the rapid and dramatic deterioration of the mortgage-backed securities market," the lawsuit said.

ABP Pension Giant sues Deutsche Bank over mortgage-backed securities

Oregon Public Employee Retirement Fund Sues Countrywide over Pension Losses

Louisiana Sheriff's Pension Sues Wachovia Over Mortgage Back Investments

State Street Sues Over Pension Losses Tied To Morgage Crisis

[url=http://www.reuters.com/article/2011/11/08/morganstanley-debt-idUSN1E7A625P20111108?feedType=RSS&feedName=governmentFilingsNews&rpc=43]Source[/url ]
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I could go on and on, but I think you get the idea.

That is exactly what I'm scared of. I'm a teacher (of 22 years) and my husband is a college professor, and both of us are in the mandatory teacher's retirement system of our state. We are required to put X amount of dollars into it each month. If it all works like they "promised", we'll be fine. If the money is all gone, we'll be in a lot of trouble and won't be able to retire...ever.

Yes well what about those of us who already retired? The pension is our lifeline, our pay check. It's not as if we stand a chance of getting a job - even if fit enough. And we paid a LIFETIME of contributions.

It's going to be a huge problem. I don't know how it's going to turn out. I might not be very pretty. At least those that can control their investments should roll them over into a private IRA. But even then you have to be careful because we now know we can't trust Goldman Sachs, so where do you put your money? Edward Jones? Are there any safe investment houses today?

I don't know. I'm thinking maybe keeping an all cash investment in credit unions is the only safe bet today.

It's like you can't trust the investment advisors.
You can't trust the investment houses.
You can't trust the stock market.
You can't trust the big banks.

Who can you trust?

Here's an interesting post made today at Zerohedge:

While everyone is focused on the drunk being pulled from the pool--Europe's sovereign debt--another drunk is teetering on the edge: public and private pension plans.

Here's the reality in a nutshell: pension plans only work if they earn average returns of around 8% per year, basically forever.

Gripped by the mono-maniacal desperation of an addict who sees no other path but another hit, central banks have lowered interest rates to near-zero to "spark growth." Unfortunately the only thing being goosed is the future cost of servicing the additional debt.

How do you earn 8% on money which yields at best 3%? You can't. How do you reap a gain on bonds when interest rates have already hit bottom and can't fall any lower? You can't.

.

Source

Another new pension lawsuit filed:

U.S. Bancorp Sued by Pension Fund Over Investor Losses on CDOs

U.S. Bancorp knew mortgage loans underlying the bonds weren’t properly transferred to trusts and caused investors to suffer millions of dollars in losses, Oklahoma Police Pension and Retirement System said in a complaint filed yesterday in federal court in Manhattan.

“U.S. Bank’s violations of its duties have resulted in certificate holders unnecessarily suffering millions of dollars of losses because they were dependent on a faithless trustee to protect their interests,” the fund said in its complaint.

The mortgages loans were pooled and securitized by Bear Stearns, the investment bank that was acquired by JPMorgan Chase & Co. (JPM) As the trustee for the two trusts at issue in the lawsuit, U.S. Bancorp was required to take steps to ensure the securities sold to investors were properly backed by mortgages, the pension fund said.

Bloomberg

reply to post by GeorgiaGirl



Personally, if I were you, retirement would be the LAST thing I'd be worried about. Survival would be the first thing.