Is the pension fund investment a good idea?

Link: Granholm's pension fund idea stirs questions.

David Sowerby, portfolio manager for Loomis, Sayles & Co., in Bloomfield Hills, said Granholm' s plan makes sense in a state economy that has seen consolidations, mergers and acquisitions result in too many Michigan companies relocating elsewhere. The New York State Common Retirement Fund has set aside $836 million -- or about 8 percent of its total fund -- for investments in state companies. In the past eight years, the fund has invested more than $271 million in 107 New York businesses.

Comment -- Just because this works in New York does not mean it is a good idea for Michigan.