Monday, October 20, 2008

What part of bubble didn't they understand?

I'm not expecting Kentucky Retirement Systems to answer my questions any time soon about how much money they have in toxic mortgage securities, but data from their 2007 annual report suggests they were busy buying them at exactly the wrong time.

The chart below shows that the KRS held $845 million in mortgage securities on June 30, 2006 and that by June 30, 2007 that number had nearly doubled to $1.47 billion.