Portugal Is Latest Country To Go "MF Global", Raid Pensions Funds To Delay Fiscal Death

Submitted by Tyler Durden on 12/03/2011 12:15 -0500
Comments: 119 / Reads: 13,005

About a year ago, we discussed the very troubling moves by insolvent countries such as Ireland and Hungary to "raid" their pensions funds for various fungible purposes, a move which in virtually every way a was a progenitor to the MF Global capital commingling, if not outright bankruptcy, and was explained as reflecting "a willingness by governments to use long-term assets to fill short-term deficits, including Ireland’s announcement last week that it would use the country’s €24bn National Pensions Reserve Fund “to support the exchequer’s funding programmeâ€