Economic Meltdown Begins

Here are some signs that economy isn't well:

1. Chrysler facing huge loss, slashes production. [Sep 19]
   
2. Yahoo warns lower advertising income [Sep 19]
3. Index of Leading Economic Indicators Falls for 2nd Straight Month, Sliding 0.2 Percent in Aug. [Sep 21]
4. Philadelphia Federal Reserve: Area Factories See Shock Contraction in September [Sep 21]
   

And here's one item that won't get much coverage but should shake the boots of the government retires (and other retires) dependent on pensions:

Implosion of Fund Is Felt in San Diego: San Diego County's government is accustomed to accolades for earning outsized returns on its employees' retirement money, while the city of San Diego has been ridiculed for bungling management of its pension fund. Now, after betting on a hedge fund that subsequently suffered a big loss, the county is under fire for what some say was a surprisingly risky investment strategy.
The county invested $175 million last year with Amaranth Advisors, a Greenwich, Conn., fund that told investors this week that it had lost 35% of its assets and was liquidating energy holdings after the recent drop in natural gas prices.

35% of $175 is $61 million. That could have paid for a lot of golf fees [if not golf balls]. And how many other pensions took similar hits? And how many other funds are suffering? And then what happens when MBS starts to default?

Update 1PM: Loss worse than first reported: 55% of assets is the latest figure. So, 55% of 175 is actually $96 million loss just for San Diego County retirees. How many others will this affect?