Posted tagged ‘cyclical’

Labor’s Improbable Return?

June 30, 2008

This one will be quick. It seems, however, that unions and other labor organizations that are tied to large pools of pension money would be well served to begin putting that to good use. Indeed the state run pension systems are seeing lots of investing opportunities, but remain cautious and picky. Want to ensure a flailing bank, with a massive footprint in the U.S., stops outsourcing jobs? Offer up a capital infusion at a better level than they can get now… Want to ensure companies are less hostile towards unions? Start up a platform for investing in distressed companies. Once your pension system owns the company, I bet they will be more pro-union. I would imagine that these pension funds will face large scrutiny, obviously these decisions should be made in the context of a sound investment thesis. Just my thought on how unions, too, can prove cyclical.