Looking back at 2008-2009 and looking forward to 2010, pension funds and other institutional investors have begun to consider “macro buckets” of risk exposure that take into account liquidity.

In the fall of every year, fantasy football leagues establish playing fields all across the U.S., and even (gasp!) Europe. If I were playing fantasy football, I would make the SEC my top draft pick.

A quote from Graham and Dodd in the first edition of their path-breaking book, “Security Analysis,” describes the essence of corporate governance. They made this statement in the middle of the Great Depression when shareholder rights were scarce and underutilized.

FAS 157 is the new accounting rule that applies to corporations, investment managers, private equity managers and banks. But pressured by lawmakers, the Financial Accounting Standards Board added a little accounting alchemy of its own.

In good times, also known as bull markets, investors are happy and money managers seem like geniuses or clairvoyants. But these are not good times. As a result, institutional investors are reviving the great debate between active investing and passive investing.

In 2008, pension funds were hit hard by declining Treasury rates and declining asset classes. The long recovery will likely include cutting equity allocations.

President-elect Obama has stated that he will make the U.S. economy his No. 1 priority. He will inherit the $700 billion bailout package passed by Congress — and a virtually inevitable need to raise taxes to support it.