[Attention Surplus Disorder]

Don't kid yourself. A "Public sector pension fund" is not an asset, per se, it is a container of assets. It is in effect a giant brokerage account, containing stocks, bonds, real estate investments. If the CATerpillar stock in the pension fund takes a 50% poop, the CATerpillar stock in YOUR and MY brokerage account takes the same poop.

Just like, the price on the last barrel of oil transacted impacts the price of every other barrel of oil "out there".

Just like, the price on the last ounce of gold transacted impacts the price of every other ounce of gold "out there".

In a debt based financial system, all the debt (other than sovereign debt) is in theory collateralized.

This is what I am saying. This is what MFGlobal has revealed. If the assets underlying the debt that bought whatever cockamamie crap Corzine bought are triple pledged, then when they are seized in the margin call from hell, then theoretically ALL assets fall by 2/3rds in value. Instantly.

[Track9]

Understand what you say. Very clear. In fact those Multi leveraged (re-hypothecated) 'assets' disappear overnight when they have to show their hand.

My comment concerning 'Public sector pension funds' was made under the assumption they are also being used as collateral by municipalities, state governments and fed gov. to issue bonds etc. In effect doing exactly what AIG or LBIE or MF Global was doing through their London office. But here I'm getting over my head..

I view most of big finance to be a game of covering up the cost of Utopianism. I'm learning to find it very interesting and simply want to clarify and test my assumptions. Your question about what other asset classes will sh*t the bed is excellent.