Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Upload your resume securely at https://www.dwsimpson.com
to be contacted when our jobs meet your skills and objectives.


Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

Reply
 
Thread Tools Search this Thread Display Modes
  #501  
Old 04-08-2014, 09:17 AM
Steve Grondin Steve Grondin is offline
Member
SOA AAA
 
Join Date: Nov 2001
Posts: 7,442
Default

When you are bankrupt, how should you spend your money?

http://www.theguardian.com/world/201...ides-community

Reply With Quote
  #502  
Old 04-08-2014, 09:18 AM
snikelfritz's Avatar
snikelfritz snikelfritz is offline
Member
 
Join Date: Jun 2011
Location: Yep
Studying for Nope
Favorite beer: Yep
Posts: 27,409
Default

Quote:
Originally Posted by Steve Grondin View Post
When you are bankrupt, how should you spend your money?

http://www.theguardian.com/world/201...ides-community

On things your creditors can't take back from you......
__________________
The universe is a cruel uncaring void, the key to being happy isn't the search for meaning, it's to just keep yourself busy with unimportant nonsense and eventually, you'll be dead.
Reply With Quote
  #503  
Old 04-08-2014, 02:16 PM
PeterL PeterL is offline
Member
SOA
 
Join Date: Oct 2011
Location: Colorado
College: done with that
Posts: 1,145
Default

It looks like they're going to try to privatize the water district.

Quote:
Plans to privatize the Detroit Water and Sewerage Department (DWSD) are moving forward with increasing speed.

In March, Detroit Emergency Manager Kevyn Orr requested proposals from private companies interested in the DWSD. These proposals are due this week, with final bids to follow by June. The water department in Detroit may become the largest water system to be privatized in US history, according to Global Water Intelligence.
http://www.wsws.org/en/articles/2014.../dwsd-a08.html
Reply With Quote
  #504  
Old 04-12-2014, 08:08 AM
GrammarZombie's Avatar
GrammarZombie GrammarZombie is offline
Zombie Mary Pat Campbell
 
Join Date: Feb 2011
Favorite beer: braaaaaaaaaaaaaaaains
Posts: 695
Default

http://www.reuters.com/article/2014/...0N12FX20140410

Quote:
(Reuters) - Detroit's emergency manager Kevyn Orr showed little enthusiasm on Wednesday for a new proposal from a bond insurer to sell or securitize the insolvent city's world-class art collection.

The collection, housed at the Detroit Institute of Arts, has been in question since Detroit filed for an $18 billion municipal bankruptcy last July, the largest in U.S. history.

The city is pushing what it calls a "Grand Bargain" to save the collection by raising about $815 million from the state, private donors and several foundations to pay the city for the entire collection. That would stop any potential move to break it up and sell it off to pay off the city's creditors.

But bond insurer FGIC Corp, which insurers $1.1 billion of the city's pension debt, said on Wednesday it had received proposals from "credible third parties" for acquiring or monetizing the collection that would generate $1 billion to $2 billion for the bankrupt city, considerably more than Orr's current plan.

Orr poured cold water on that idea in an interview with Reuters late on Wednesday. "We have no intention of selling art," Orr said. "In a Chapter 9 you cannot compel the city to sell anything, not a park, not a zoo, not the DIA."

.....
The four proposals FGIC said it had received range from an offer to buy a small percentage of the DIA collection for between $896 million to $1.473 billion to using the collection as security for a loan to the city of up to $2 billion, FGIC said.

"How can the City even consider blindly forging ahead with the Grand Bargain when presented with real alternatives that would allow it to substantially enhance creditor recoveries (to the tune of $1 to $2 billion) while maintaining the DIA as a culturally relevant institution?" Steve Spencer, a financial adviser to FGIC, said in a statement. (Additional reporting by Dan Burns; Editing by James Dalgleish and Ken Wills)

Reply With Quote
  #505  
Old 04-17-2014, 01:32 AM
exactuary exactuary is offline
Member
 
Join Date: Jan 2002
Posts: 1,033
Default Actuarial Magic to the rescue

http://www.nytimes.com/2014/04/17/us...e-wary.html?hp

Quote:
A day after Detroit scaled back from the large pension benefit cuts it had once been proposing, the bankrupt city fended off charges from some that it had simply caved in to retirees in ways that could come back to haunt it. But it also felt the elation of many of its current and former employees who for months had feared a more dire outcome.

“It’s a quantum leap forward from what the pensioners were being offered, that’s for sure,” said Douglas C. Bernstein, a bankruptcy lawyer at the firm of Plunkett Cooney in Bloomfield Hills, Mich., who is not involved in the pension negotiations. “I’m pretty sure that the judge will require them to show that this deal is in fact affordable.”

How it happened is the story of an effort to protect as much as possible the workers and retirees who have been the backbone of the city’s working and middle class. The deal was eased by a decision to project better pension fund returns because of the stock market’s performance last year, and fears by the workers’ negotiators that if they did not accept the agreement the terms would get worse.
__________________
An exact actuary
Reply With Quote
  #506  
Old 04-17-2014, 11:43 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 93,732
Blog Entries: 6
Default

I'm sure that will work out well for them.
__________________
It's STUMP - meep on public finance, pensions, mortality, and more

LinkedIn Profile
Reply With Quote
  #507  
Old 04-17-2014, 12:22 PM
Klaymen Klaymen is offline
Member
CAS
 
Join Date: Oct 2001
Posts: 20,449
Default

LOL after a roaring stock market year I would expect future returns (short/intermediate term) to be lower. But I can understand that expected future returns, if they are based on measures of historical performance, would increase after a very good year.
__________________


Reply With Quote
  #508  
Old 04-17-2014, 01:08 PM
nonlnear nonlnear is offline
Member
Non-Actuary
 
Join Date: May 2010
Posts: 32,197
Default

So it was the deck chairs that were the problem all along!
Reply With Quote
  #509  
Old 04-17-2014, 03:33 PM
exactuary exactuary is offline
Member
 
Join Date: Jan 2002
Posts: 1,033
Default

What do you think GRS and Milliman are contributing to the discovery that Detroit can assume higher returns?

Are these public plan actuaries sincere?

We were just following the ASOPs.
__________________
An exact actuary
Reply With Quote
  #510  
Old 04-17-2014, 05:16 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 93,732
Blog Entries: 6
Default

I hope they've got good coverage.

No matter how many disclaimers get slapped on it, I would expect lawsuits when the plans don't meet assumptions and they fail.
__________________
It's STUMP - meep on public finance, pensions, mortality, and more

LinkedIn Profile
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 03:10 AM.


Powered by vBulletin®
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.48144 seconds with 10 queries