DECEMBER 25, 2009. I have to begin by saying you need to know about Walter Burien. http://CAFR1.com
Walter curls people’s hair. For many years, he has been investigating the investments made by governments. The what? I know. This sounds like a non-sequitur. Governments aren’t businesses, are they?
It turns out they are. Well, when you think about it, it’s obvious. They run, for example, retirement funds for their employees, and those funds make investments, they don’t just store money in shoe boxes.
Recently, Walter provided a link to the New York State Retirement Fund Asset Listing (March 31, 2006). You can find it at: http://cafr1.com/STATES/NEWYORK/RETIREMENT/NYRINV2006.PDF
This document shows the investments this fund makes, and the value of each stock holding. The implications are enormous. For example, when you pinpoint the many pharmaceutical stocks, you realize New York State government will be a primary beneficiary of any national health plan. Why? Because drug companies, under such a plan, will be selling far more drugs as millions of new, previously uninsured people come under the federal umbrella.
Any piece of news that makes the pharma landscape glow tends to shoot up stock values.
From a financial point of view, it would be ridiculous to assume New York State government would oppose national health insurance. It’s good for business. The business of, yes, New York State government.
And by the way, to the extent that some of these drug companies manufacture vaccines (and they do), the New York State government would be a big-time supporter of the mass vaccinations that accompany each new phony epidemic, such as Swine Flu. Again, for business reasons. In fact, we may now understand a new reason why, until huge protests derailed it, New York tried to make the H1N1 vaccine mandatory for all state health workers.
Here are some of the pharmaceutical listings in the New York Retirement Fund. The value of each stock holding is as of Mar.31, 2006.
Barr: $39,152, 525
Baxter: $105,606, 745
MedImmune: $46,942, 968
Bristol-Myers Squibb: $195,807,422
Eli Lilly: $249,409,636
Drug companies. $2.5 billion and change. One retirement fund in one state.
Walter Burien goes much further—and here you would have to consult his site for supporting evidence. He states that, when you look at the various investment funds of the 50 state governments, and when you consider the possibility that many of these funds act (invest) in concert, governments turn out to be controlling stockholders in some of the biggest corporations in America.
Turn that thought over in your mind a few times.
Here’s another explosion: To what degree did the federal bailout bail out the New York State government? Well, among the 2006 NY Retirement Fund listings, we have:
Goldman Sachs: $268,770,613
Bank of America: $896,993,638
This gives another perspective on what a fed bailout means. It functions as profit protection. For a state government.
Imagine state legislators and other state officials consulting THE INVESTMENT PORTFOLIO of their state government before they vote for or against legislation.
The hits keep coming.
“As governor of your state, my friends, I am taking every action I can to assure the profits of this administration continue to rise. As taxpayers, you are the stakeholders. What you pay us, we invest. Of course, we never show you the balance sheet, and we never indicate whether we need your taxes, or whether our profits alone are sufficient for running the state. But that’s the way the game works. You stay in the dark. When we raise your taxes, we give you reasons—which may be accurate or sheer nonsense. The point is, we keep taking your money and investing it…”