Last month I commented on an article forwarded to me by a friend who lives and teaches in Texas. It was a short piece about how the governor wanted to take out life insurance policies on retired teachers and add the death benefits to the state teacher’s retirement system. I had a hard time believing that anyone would fall for such a plan but I guess the idea still lives. The Irascible Professor has more details on the scheme in his weekly commentary and the situation is worse than I thought. Beyond profiting from the deaths of the former teachers, ghoulish enough on it’s own, the plan would basically screw the retirement system as well. In fact, the only ones profiting from this "dead peasant" scam would be UBS, the investment bank underwriting the plan, Phil Gramm, former Senator from Texas and employee of UBS, and, I’d bet anything, the governor.