The Florida State Board of Administration manages a fund that (in theory) holds and invests more than $128 billion dollars in principal for the benefit of more than 1 million beneficiaries. (More Here)
I say in theory because I don’t believe Wall Street could pay out all the investors that think they are invested in the market. Think about what we’ve learned from Fraudclosure. Think about what we learned from Bernie Madoff. Wall Street is effectively lawless and unregulated, driven and controlled by men and institutions that have nothing but a profit motive governing.
Every month when my friend gets his investment account statements from Merrill Lynch with the charts and the graphs and all the zeroes after it, I wonder, what if he and the Florida State Board of Administration and other investors all across the country tried to convert their paper statements into something real and tangible like gold or farms or US Currency. I just don’t think there is any way Wall Street could pay off anywhere close to all the investors that are invested. Not even close. And what would happen if any significant percentage of investors started to convert their paper statements into something tangible? Well, that’s part of what happened leading up to the Great Depression….and our economic condition is considerably worse today. Wall Street is a confidence game and a Ponzi scheme.
And there is a real stink of corruption surrounding the SBA recently, especially since they are effectively denying requests for public information about insider deals and payment of commissions and fees to members of the Golden Club. (more here)
So I’ve got an idea for us all. Take a few billion from the SBA and use it to purchase homes all across the State of Florida. Then offer mortgages to teachers, cops and people who are invested in the SBA. The SBA would then be partially invested in fixed, hard assets which can be bought right now on extremely favorable terms and people that are stable in a community would be moving into and caring for homes that are being abandoned and wasted. And no free ride for these people, the mortgages would carry prevailing market fixed interest rates….still a great deal for them because mortgages are largely unavailable today.
More importantly, Florida would be harnessing its own capital and securing its own investments rather than continuing to play in the dangerous shell game that is Wall Street.
But in this land of abject fraud and corruption, something like this will never happen…..this state’s “leaders” are not the least bit afraid of the people.
