about how much private equity costs mostly to the pension fund industry but 1st we'll talk about cowper's which is. the biggest pension fund in the world certainly in america it's there it's for public sector and california and cowhorse the biggest us public pension is considering boosting leverage to as high as 20 percent of the value of the fund or nearly $80000000000.00 based on current assets in order to achieve its 7 percent annual returns target so this is j. pow this is janet yellen this is ben bernanke he and this is alan greenspan they cause a situation of allowing that that the pile of fraudulent debt the black hole of debt that causes the inflation that they keep on printing money to throw into they have caused these that this is the next mess this is where the risk has been transferred because remember the tyrant in the central bank that they don't want price discovery what they're trying to do is to prevent anybody from understanding the risk they're taking well the risk doesn't disappear disappears off of citadels balance sheet perhaps but it's put here in these gallant shee

s credit default obligations they had a large debt obligations so cowper's during bad period of 20082008 so read that and you can see where risk goes to die but again risk dice in your pension fund dies in your municipality guys where it's going to herm harm the most people right spread out across the peasantry away from the top 0 point one percent and that is this really is a staggering statistic investors paid $230000000000.00 in performance fees over a 10 year period for returns that could have been matched by an inexpensive tracker fund costing just a few basis points so that is private equity was handed all this money muesli by pension funds like calipers and they took $230000000000.00 in fees and they did not outperform just buying a simple index that cost you know a fraction of a percent right it's a it's an enormous down the private equity industry as is the hedge fund industry hedge funds very rarely outperform the market anything any consistent way and even warren buffett has failed to outperform the market for 15 years in private equity is huge you dump of fees but you know th

that right on bro you know let me get a comment something cowper's the biggest public pension fund in america there in california you know they are always been the joke of austrian wall street tends to park all their risky toxic risk into their cowper's and other public pension funds i know and i work on wall street and never had a bad trade in just dump it in a public pension fund and they never know the difference they have been underperforming for errors and now they say well to try to make up for are going to go on leverage the rest are treading on margin. i think the pension guaranty corporation is going to have a lot of work to do in the very near future that's yes fana all right michael pence out of pent up pork dot com thanks for being on the kaiser report thanks for having me back on and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank our guest michael pentel of port dot com if you want to catch us on twitter it's kaiser report the next time. you can't be go with yeah you like. is you'll be a reflection of reality. in a