The Management of American Finances

I realize that this post is a little late in that the financial crisis happened last year. However, I am still learning more about some the things companies that dealt in the finanical world were allowed to do. As a result, I am surprised at how this country’s finances were managed for a period of time. For a time I had known that pension funds had been placed in hedge funds and investment vehicles. However, I did not, until recently, know that hedge funds were allowed to leverage themselves so greatly. Pension funds should never have been allowed to be placed in hedge funds. Considering they (hedge funds) were unregulated, the way these companies were allowed to leverage money, and the fact that pension funds had to be paid out regardless of whether the money was lost in bad trades it was a bad idea to have pension funds placed in hedge funds.