El Economista reports 97% of pensions are invested in
Spanish government debt in 2012
The
Reserve Fund of Social Security in 2012 increased their holdings of Spanish
debt to 97% of total assets, up from 90% who had in late 2011.
Over
70% of purchases are recorded in the second half of 2012, according to
Bloomberg points, after the critical moment when ECB President Mario Draghi,
undertook to do "whatever it takes" to defend the euro. A message
that helped ease the constraints and helped drive Spanish debt.
In
2007, the money invested in financial assets were divided fairly (50%) between
Spanish debt and foreign debt, but this proportion began to change in 2008.
In
September 2012, for the first time in history the government had to dip into
the reserve fund to pay the payroll to pensioners. A total of 3,063 million
euros were drawn from this instrument, to which were added to the 3,530 million
in November Moncloa needed to fund the pension increases.
Comparison
to GM
This
exactly reminds me of the stupidity of GM investing its assets in GM bonds.
Expect similar results in Spain.
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