Patterico's Pontifications

10/31/2008

Stock Market Losses Affect Virtually Everyone

Filed under: Economics — DRJ @ 4:38 pm

[Guest post by DRJ]

The Instapundit links to posts summarizing pension fund losses that signal big problems to come but it’s not just pension funds that are in trouble. It’s also hitting academia:

“The University of Texas at Austin endowment has declined by nearly $1 billion this year as a result of the turmoil in worldwide financial markets.
***
The Permanent University Fund, of which two-thirds is earmarked for UT System campuses and one-third for Texas A&M University System institutions, was worth $13.8 billion at the start of the year. Its value dropped nearly 14 percent to $11.9 billion by the end of September, according to the investment company.”

The financial turmoil is expected to impact construction projects, faculty salaries and scholarships at all UT and Texas A&M campuses.

— DRJ

12 Responses to “Stock Market Losses Affect Virtually Everyone”

  1. And of course, there’s still Social Security and Medicare to come. Way I hear it, we’ll do what other countries have done and take Social Security away from anyone who has and income or saved up for retirement.

    Kevin (0b2493)

  2. there’s still Social Security and Medicare to come
    .
    Estimates range from about 70 trillion in unfunded future libilities, upward. Pocket change for Obama. Spread the wealth!

    cboldt (3d73dd)

  3. The Permanent University Fun may have a lower value than before, but you have not lost any “money” unless you have to divest and spend the funds.

    Dan Kauffman (3c9c17)

  4. Yes, but the PUF principal funds some capital projects and the interest funds the remaining expenditures. Less principal means less interest and together that means less everything.

    DRJ (cb68f2)

  5. It’s always amazing how quickly “Share the Wealth” becomes “Share the Misery.” As Heinlein puts it, this is usually blamed on “bad luck.”

    Kevin (0b2493)

  6. For years Academe has been whining about the evils of Capitalism, now they get to share in some.
    When your endowment fund lives by the stock market…..

    Congratualtions, you bunch of ingrates, welcome to the real world!

    Another Drew (7aa87e)

  7. Such is the real reason for the bailout, the hope, to shore up all those 401k’s et all.

    Imagine if 60 million voters got to lose so much right before an election!?

    They should have let it all fall!

    TC (0b9ca4)

  8. Yeah, that market collapse was well timed. Did it fall, or was it pushed?

    Kevin (0b2493)

  9. Typical college. “Nearly $1 billion” is closer to $2 billion. $13.8 to $11.9. You do the math.

    Phil Dayton (6cc379)

  10. My aunt just received a letter from the State of Wisconsin warning of potential need to decrease the pensions of all retirees in the State!! Letter said they will know more end of year. Apparently set up on annuities and the only safeguard is pension cannot be reduced to less than the annuity was valued at the date of retirement.

    dianne (0dbf79)

  11. Yeah, that market collapse was well timed. Did it fall, or was it pushed?

    Now that Baracky is falling in the polls, isn’t it time for Chuck Schumer to come out and name a bank on national TV that he is afraid might fail?

    Patricia (ee5c9d)

  12. Faculty Salaries? I’m sure they will be good little socialists and accept that they are spreading the wealth.

    Icy Truth (84d054)


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