Public pension funds buy bottom of the barrel debt

Blown Mortgage reports:

As a way to say thanks to all of those hard working fire fighters, policemen, teachers and other public servants; organizations such as CalPERS, Texas Teacher's Fund and the Missouri State Employee's Retirement System bought millions and millions of dollars worth of collalteralized debt obligations (CDOs) made up of the worst of the worst mortgage debt. No better way to say thanks for your service than putting your retirement dollars in the "first loss" position of the worst in subprime mortgage debt.

They'll probably get a bail out.