Chapter One Unfortunately, it has a reputation as the one public pension that lost more money than all the others combined. Some people say it is the most corrupt and inefficient public pension fund in the United States. In 2010, Stanford University published a warning stating that CalPERs and CalSTRS, the University of California Retirement System, are collectively unfunded by $500 billion dollars and have engaged in overly risky investments. Half a trillion dollars is quite a shortfall. There goes the myth of obtaining job and retirement security by working for the government.
The Smartest People in the World You get my point. Unless you have been living under a rock since 2007, I believe you know the story: the story of how the smartest financial brains in the world, the people we look to for financial wisdom, the men and women who went to the best schools in the world, supposedly receiving the best financial education in the world, caused the biggest financial crisis in world history, a crisis some have called the New Depression. The question that arises is this: If theyâ€™re so smart, if the leaders of our financial institutions received the best financial education money could buy, why is the world in such a financial crisis? Why are the rich getting richer, the poor getting poorer, and the middle class shrinking? Why are taxes going up and governments going broke? What happened to the jobs? Why are wages going down as inflation goes up? Why are so many baby boomers, people who followed the advice of the best-educated brains in the investment world, now afraid of running out of money during retirement? Why are so many young people, graduating from school under massive debt, unable to find jobs, jobs that can pay off their student loans? The coming crisis will not be the real estate bankruptcies. The next debt crisis will be defaults on student loans. Could the problem be the poor quality of our leadersâ€™ financial education and the lack of financial education of the masses? 26
by Rich Dad, Robert Kiyosaki