Well this coming October it will have been 5 years since my nightmare began and those involved began there attempt of my demise and they were sadly mistaken that they could destroy me. We have so many issues on the table still here in Santa Barbara. Is or was a select few in local law enforcement and District Attorneys office available for hire or was there misconduct just for there amusement in my case and others like me? Is Superior Court Judge C. Sterne due to be removed from the bench voluntarily during the first week of the New Year for her lack of running in this past June primary? What of County Auditor Robert Geis and his attempt to defraud our county residence and law enforcement with his handlings of the pension fund auditing reports? Oh before I forget some one might want to call the Santa Barbara news press and have them correct today’s new “Gang “story because Judge Anderson is presiding over the trial and not Judge Brian(hang man)Hill as we have become accustom to.
Having shared that with you all how can I tie in my personal issues with family and the law into the equation? “SilPac.net contains copyrighted material, trademarks and other proprietary information, including, but not limited to”. No you will not find that legal warning on my brother’s webpage because of his fear that I might learn that I have rights in regards to our past and still present business relationship which would bring into play his fiduciary obligation to me in all matters.
Some people and sadly I am talking mostly about my family would have you believe I do not know what I am talking about in any subject matter that I chose to share with you all. Yet today I challenge myself to share with you all some new Ideas an thoughts that should not only have an effect on just my readers but should create an uproar and reaction in us all.
A fiduciary duty[2] is the highest standard of care at either equity or law!
There is much more to the definition of Fiduciary Obligation but for today let’s keep it short and on equity as it relates to this County and there “alleged” investments on Wall Street
Now do you all remember my Wall Street posting and my analogy that Wall Street is nothing more than an exotic sports book? Really do you still think that Wall Street is a financial institution with laws and regulations that protect us? Now before I get on some long winded reason why I am correct re-take a look at this web page than get back to me. www.intrade.com go ahead and check it out I’ll wait.
Copied from www.intrade.com
Conservatives to win next UK General Election
Last Price 80.0 down 5.0
You can buy
This at 80.9
You can sell
This at 80.0
All that gambling in the form of investment trading how incredible is that and where you surprised? I use this web page as a dramatization to show the relationship of Wall Street to Las Vegas. Now if you noticed there was a buy and sell price on all there lines and a difference in between those two quotes. Normally on a trade (investment device you chose to purchase) there is only the trade price but this exaggeration makes it easier to understand. So if 3 weeks ago I bought a credit default certificate because I expected the sell price to be 2 dollars higher than it shows on this date one would think I lost. However no not at all I could win and win huge. Yes indeed regardless of the trade price or the fact that I do not own any units I can for a small fee gamble on the action of any price fluctuation up or down with the purchase of a cdc (credit default) certificates. Again if on this day I had an option on x units and that trade price was a plus or minus from my option I either would have owed or cashed out the difference. So than why not just buy CDC’s on the action of the commodity and never risk my assets as a whole? What is the one golden rule with money and who will be your best partner? O.P.M. is the only rule to live by and the government with its limitless resources of creating cash and criminals to help you make it and pretend to lose it. Other Peoples Money O.P.M. never never never use your liquid assets (cash) to invest in if you can avoid it and credit default swap is exactly how you risk just a very limited portion of your assets with the unbelievable opportunity for enormous gains. Let other people buy and sell while you live of the ying and yang of every action as it affects the stock market.
Now honestly I am not smart enough to pretend to educate anyone on the ways of Wall Street but what I can do is ask the falling questions.
Since hedge funds are able to mask who is participating in them what business does the County have investing in those funds thus creating a cloak of stealth in as far as following investments? Remember now A fiduciary duty[2] is the highest standard of care at either equity or law! I did notice where on several audits of the pension fund they were indeed involved and invested in Credit Default Certificates. Although with the lack of transparency that the Mercer document mentions, what exactly was bought and what happen to those certificates no one can tell from the audits in there present form? The reason I ask is this; let us say for example we lost 10 million dollars in a huge fund such as a Charles Schwab but our 42,000 dollars invested in default certificates produced an astronomical return of 6 million dollars. That could open the door for an unethical use of funds to cover up some poor decision making. Which would than brings is us to smoothing as it applies to accounting used in the Santa Barbara county pension fund.
With the use of New Pension math lets review the use of the term “SMOOTHING” in regards to pension funds. Below is a portion of a letter by Robert W. Geis CPA in Santa Barbara as he explains MAGICAL Pension math allowed by our Government. It reflects a form of Dollar cost averaging but how is that beneficial? “Asset Smoothing: Under current retirement board policy the Actuarial Value of assets is a smoothed market value in which unexpected investment returns (gains or losses) are recognized over a 5-year period. The purpose is to smooth out the impact of volatile investment returns with respect to County contribution rates. The downside of using the actuarial method is a distortion of when the investment losses were actually incurred.” How can a non factual portrait of value and a lack of carry over sheets ever reflect a true and accurate account value?
Which leads back to the term we all must understand when dealing with any account balancing sheet and our pension fund deficits? The term is “Netting’ or as I call it this for that and give it back. It is the deceptive practice of having and investment appear as a benefit on a previous year and taken off as a cost the following year thus never having a measurable effect on the accounting in question, best as I can describe it. Usually shown on a side by side comparison so as to confuse the investor.
Why bring into question A fiduciary duty[2] is the highest standard of care at either equity or law! Because the untitled Mercer document brings up this issue several times through out there 31 pages. So enclosing of this posting I ask 1 final question. What happen to the newly formed pension review committee by our Santa Barbara board of supervisors and why is this still happening behind closed doors, have we learned nothing?
As always if you found some usefulness in my posting I ask that you please share it with others.
Regards
Larry Mendoza
Something you might find interesting
http://www.oecd.org/dataoecd/3/49/41218144.pdf
Pension Fund Performance
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