PBGC Scam: In the Summer, They Still Believed They Could Win

I have just one thing to add to the great discussion on the report that the Pension Benefit Guarantee Corporation’s decision last summer to move the pension fund out of bonds and into stocks.

Just months before the start of last year’s stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

The agency refused to say how much of the new investment strategy has been implemented or how the fund has fared during the downturn. The agency would only say that its fund was down 6.5 percent – and all of its stock-related investments were down 23 percent – as of last Sept. 30, the end of its fiscal year. But that was before most of the recent stock market decline and just before the investment switch was scheduled to begin in earnest.

First, we know from the fear-mongering about voter fraud and the plans to use foreclosure lists to vote-cage that the Republicans still believed they had a shot of winning New Mexico, Nevada, Ohio, and Michigan. Last summer, at the time this decision was made but before the switch was enacted (according to the vague dates in the story), Republicans still believed they had a shot at winning the Presidency.

Second, we know that the Bush Administration used federal resources for political ends. 

Third, the market was already beginning to tank when they made this decision.  And Karl Rove knows you don’t win elections if the economy isn’t "strong."

Call me crazy. But it sure looks like some Bush flunkie put the potential retirement of a bunch of Americans up in smoke so a guy who married a $100 million sugar momma would have a shot at being President. 

Update: Prof Foland and drational say I’m wrong, and that the scandal is likely cronyism and not electoral politics.

Prof Foland:

Yves Smith has the allocation percentages before and after. To me at least, they don’t seem to suggest that this was done to rescue the US stock market. Actually, the US stock market investment percentage went down as a result of the change, from 25% to Read more

The McCain Economic Leadership that Might Have Been

Just for shits and giggles, I thought I’d compare how one Villager regurgitated the myth–propagated after McCain "suspended" his campaign in September "to respond to the economic crisis"–that John McCain might lead us out of our financial woes…

Sen. John McCain’s surprise announcement that he would temporarily suspend his campaign to return to Washington to help broker a deal to save the financial industry is the latest in a series of political gambits surrounding the financial crisis on Wall Street, and is sure to reshape political calculations and voter attitudes around the volatile issue.

The move is an obvious attempt by McCain and his campaign to paint the Arizona senator as above politics, willing to put aside his campaign for the good of the country.

It comes as two new national polls — including one conducted by the Washington Post — show McCain slipping in the head-to-head matchup against Barack Obama due in large part to voters’ inclination to trust the Illinois senator to solve the financial problems of the country.

The McCain campaign believes that their candidate is at his best when he is seen as a deal-maker, willing to reach across party lines to get things done for the good of the country. This economic crisis, they believe, provides McCain a chance to show the sort of leadership that voters value in the Arizona senator.

"John McCain’s leadership and experience credentials outrank Barack Obama’s," said Sarah Simmons, a McCain campaign strategist, this morning. "[We are] walking through a crisis and people are looking to see how it is going to be handled."

With the news that, 167 days later, McCain is attempting to put together a "definitive" economic platform.

Sen. John McCain is putting together a major economic plan that will be structured, in some ways, off of Newt Gingrich’s famous Contract With America.

In an email obtained by the Huffington Post, the Arizona Republican’s chief of staff, Marc Buse, asked an outside adviser for help with a "ten principles" program that the senator could use as a "definitive" platform.

"We are looking for some guidance on a definitive plan (aka contract with america style) on the economy…principles," writes Buse. "Ten principles that JSM could point to on what MUST BE DONE to address the problems our nation faces."

Buse doesn’t offer specific suggestions of his own, save "NO TAX INCREASES."

Because that’s my definition of leadership: 167 days after a failed photo op, Read more

Reid on Lieberman

Without prompting, Reid offered this explanation on Lieberman at the Progressive Media Summit:

What were we going to do with Joe Lieberman? I know how to count votes. That’s been my occupation since 1998. One vote in the Senate means a lot. I was upset with some of the things he said in the campaign. I made a decision along with Barack Obama. I’m not going to apologize for anyone for the vote Joe Lieberman gives us. he’s with us on everything but the war. Overwhelmingly my caucus thought it was the right thing to do. 

The Bad Side of the Crowds

ewpic.jpgWell, I was supposed to be watching this from the standing ticketed section.

But instead, I’m watching from the safety of Jane’s house. Because it’s not safe everywhere on the mall.

Lisa hauled my sorry a$$ out of bed this morning at 5 AM to get down to the mall in good time. I headed for the section where people with our tickets were supposed to gather; I was just one block from the gates at 7 AM. For the first hour, people were giddy and friendly. By the second hour, people had become great friends.

But then things took a turn for the worst. It didn’t help that DC’s cops were pushing people aside to get their bikes (yes, bikes, with wall to wall people, preventing them from using them) through. It didn’t help that the cops seemed to have no idea where were supposed to go. It really didn’t help that they never appeared to open the gate–which was supposed to open at 8, or maybe 9.

And then people started to collapse. First an roughly eight year old boy. Then an older woman. Then another one. Each time, we’d yell for a doctor, try to open space, pass water to the people. The cops, still, didn’t help much. And then people tried to leave, creating giant waves of shoving people. Two kids followed their parents out, weeping. People couldn’t see the few wheel chairs in the crowd, which meant those family members near the wheel chairs were yelling, trying to protect their family members. 

I finally joined the crowds streaming out. We all streamed over one block, turned right, then reformed. And then it started again. 

Elsewhere on the mall, people were still jubilant. And safe. But there are pockets of weeping, dangerously disorganized crowds out there today.

Today IS The Day!

Today is the day. Now is the time. Change is in the air. Marcy is on the ground, we will update as she checks in. Consider this an open thread for anything you have to say. Spill your thoughts, emotions and hopes. Post any breaking news you see that I, and all of of us, might need to know.

I can just feel the difference already, can you?

Let’s get it on people!

UPDATE:

Loo Hoo reminded me of Marie Roget. Although I knew her only from the blog, I loved Marie Roget. I know many others did as well. She was a self proclaimed "fire breathing progressive". She lived to see the day today, and tragically, was not able to complete the journey with us. Marie lives on through us today, and this video was one of her favorites. It is wonderful.

Schadenfreude Delayed

Remember how, back in 2002, the nutters attacked Al Franken because some nutters got booed during Paul Wellstone’s funeral?

To this day, there are still a lot of people, including Democrats, who’ve bought the right wing line on the Wellstone Memorial. Specifically, that it was a cynical, premeditated political event that included endless booing of Republican politicians who came to pay their respects to their fallen colleague. I wrote a pretty detailed account of the Wellstone Memorial in my book Lies and the Lying Liars Who Tell Them, and nothing could be further from the truth. I did write that "reasonable people of good will were genuinely offended." The memorial was raucous and a couple of speakers said some things that were inappropriate – basically, let’s win this (upcoming Senate) election for Paul.

There were also honest Republicans of good will, including Jim Ramstad – the Congressman from the Minneapolis suburban district I grew up in – who acted like human beings and cut the speakers who offended (Rick Kahn and, to a lesser degree, Mark Wellstone) a little slack because they understood that Rick had lost six very close friends and Mark had lost his father, mother, and sister.

The chapter was mainly about how cynically Republicans used the memorial politically as they complained that the Democrats had used it politically. And how the mainstream media, many of whom had neither attended the memorial nor seen it on TV, bought into the Republican spin.

Mainly, there was a lot of lying. Rush Limbaugh claimed that the audience was "planted," when, in fact, Twin Cities’ radio and TV had to tell people to stay away because Williams Arena was jammed to capacity three hours before the Memorial was scheduled to begin. Thousands were crowded into an overflow gym to watch on a screen and thousands watched outside on a cold, late October night.

A pained Limbaugh asked his audience the day after the memorial: "Where was the grief? Where were the tears? Where was the memorial service? There wasn’t any of this!"

This was a lie. I was there. Along with everyone else, I cried, I laughed, I cheered. It was, to my mind, a beautiful four-hour memorial.

I didn’t boo. Neither did 22,800 of the some 23,000 people there.

Rush? You want grief? 

I present to you Senator Al Franken.

Reid On Tape Manipulating Illinois Senate Seat Before Blago's Arrest

Thursday I described The Ugly Legal Optics Of Harry Reid’s Burris Battle. There is a new cloud dimming the already ugly optics. An article that just hit the website of the Chicago Sun Times reports Harry Reid already had his heavy ham fisted hand deep in Illinois state politics well before Blagojevich was arrested:

Days before Gov. Blagojevich was charged with trying to sell President-elect Barack Obama’s U.S. Senate seat to the highest bidder, top Senate Democrat Harry Reid made it clear who he didn’t want in the post: Jesse Jackson, Jr., Danny Davis or Emil Jones.

Rather, Reid called Blagojevich to argue he appoint either state Veterans Affairs chief Tammy Duckworth or Illinois Attorney General Lisa Madigan, sources told the Chicago Sun-Times.

Sources say the Senate majority leader pushed against Jackson and Davis — both democratic congressmen from Illinois — and against Jones — the Illinois Senate president who is the political godfather of President-elect Barack Obama — because he did not believe the three men were electable. He feared losing the seat to a Republican in a future election.

This is certainly a stunningly rich development from about every perspective imaginable. Harry Reid has threatened to use the Capitol Police to forcefully haul Roland Burris off the Senate floor should he try to enter because he feels Burris is tainted by Blagojevich’s shady machinations of the open Senate seat. Only it turns out that Reid is the one smack in the middle of Blago’s machinations, not Burris. And it would appear he is on Pat Fitzgerald’s wiretaps doing so.

Blagojevich spokesman Lucio Guerrero confirmed that Reid (D-Nev.) and U.S. Sen. Robert Menendez (D-N.J.) — the new chief of the Senate Democratic political operation — each called Blagojevich’s campaign office separately Dec. 3. Sources believe that at least portions of the phone conversations are on tape.

Before their contacts, Obama’s chief of staff Rahm Emanuel called Blagojevich to tell him to expect to hear from Senate leadership because they were pushing against Jackson and others, according to statements the governor made to others.

The Reid-Menendez calls came a day before a Dec. 4 conversation overheard on government wiretaps where Blagojevich says he “was getting ‘a lot of pressure’ not to appoint Candidate 5.” Candidate 5 is Jackson.

Did I mention that this is a nightmare from every available tangent? Not only is Harry Reid on tape with his finger stuck in the Illinois state pie, we now have Rahm Emanuel, the President-Elect’s Chief of Staff, running flak for Reid’s heavy handed interposition. Now it is certainly understandable that Emanuel and his boss, Obama, would have interest in Obama’s former Senate seat; but, again, the appearance here is unseemly at best.

That said, the main story for the moment is Harry Reid and the Senate leadership. There is no basis for believing Harry Reid is a racist, or that his actions here are particularly racially motivated, but it is no longer possible to dismiss the overtones that the picture must be starting to paint for some African American citizens in Illinois. Reid has been steadfastly determined to block the appointment of three black elected politicians – Emil Jones, Danny Davis and Jesse Jackson, Jr. because they are supposedly "not electable"; in favor of a white woman, Tammy Duckworth who has, you know, been previously found unelectable by the voters of Illinois. Or another white woman, Lisa Madigan, who managed to get elected mostly on the coattails of her powerful Chicago machine daddy. Lovely; what a picture that paints.

Oh, and now that nice gentlemanly 71 year old Roland Burris, another black man, who has previously been elected to statewide office in Illinois, can’t be permitted in the hallowed Senate doors either. George Wallace must be laughing his butt off at Reid’s bad optics and unseemly folly. And this is all occurring over the seat of the only black man in the lilly white United States Senate that was just vacated by the groundbreaking President-Elect Barack Obama. Malignant idiocy abounds.

Harry Reid will be the featured guest on Meet the Press Sunday morning. Jane Hamsher has already raised the curious difference between how Reid Read more

The Ugly Legal Optics Of Harry Reid's Burris Battle

Earlier this morning, Jane wrote a fantastic post, "Burris and Blago: What Happens Now?", that lays out most all of the concerns with the obstreperous position taken by Harry Reid and the Democratic leadership. I would like to follow up on a couple of legal points inherent in the discussion.

Illinois Secretary of State Jesse White: As you have probably heard, Illinois Secretary of State Jesse White has refused to certify Blagojevich’s appointment of Roland Burris. The problem I see with this is that there is no legal basis whatsoever for SoS White’s conduct in this regard.

White appears to be abrogating Illinois law all by himself, and he simply does not have the power to do that. Signing the certification is a ministerial act, not an established right of veto. The decision on who to appoint is the governor’s and the governor’s alone under Illinois law; there is no power promulgated for the SoS to have decision making authority. If White can simply refuse to sign the certification, and that stops the process in it’s tracks, he would have unmitigated veto power over the appointment. He does not.

Burris has obviously figured this out and has brought action demanding the Secretary of State endorse the certification.

Burris’s lawyers argued that White’s duties are strictly ministerial and that he doesn’t have the discretion to withhold his certification of Blagojevich’s selection.

“Any additional state requirement that Roland Burris must seek or obtain approval of the secretary of state to qualify as U.S. senator would be unconstitutional,” Wright said in the filing.

Whether you like Burris or not, whether you despise Blagojevich or not, Burris has now been duly appointed by a sitting governor; his appointment, absent evidence to the contrary, is valid on its face. White should sign the certification forthwith, refusal to do so is outside of his authority and is costing the citizens of Illinois valuable court time, resources and money; effectively a breach of White’s fiduciary duty to the state.

Harry Reid has lobbied against Illinois having a special election to fill Obama’s Senate seat, which they could easily hold concurrent with the election they will be forced by law to have for Rahm Emanuel’s open seat in Illinois’ 5th district. Reid is likely personally responsible for there being no opportunity for the public to vote on the next Read more

Did McCain/Palin Obstruct Justice in the Johnston Case?

h/t mark fairbanks alaska flickr/dkos

h/t mark fairbanks alaska flickr/dkos

It seems that Sarah Palin has a newsworthy scandalette for every holiday. For Thanksgiving she was preening in front of a turkey slaughter; for Christmas, she is smack dab in the middle of a felony controlled substances investigation. The New York Times reports on the investigation of Sherry Johnston, the mother of Bristol Palin’s supposed fiance:

Johnston is the mother of 18-year-old Levi Johnston. Gov. Sarah Palin announced in September that her 18-year-old daughter Bristol was pregnant and Johnston was the father.

Authorities say the case began in the second week of September — a couple of weeks into Palin’s campaign as Republican vice presidential candidate — when drug investigators intercepted a package containing 179 Oxycontin pills. That led to the arrest of the suspects, who agreed to be informants.

According to the affidavit, Johnston sent a text message to one informant Oct. 1, writing: ”Hey, my phones are tapped and reporters and god knows who else is always following me and the family so no privacy. I will let u no when I can go for cof.”

Ten days after Johnston said there wasn’t enough privacy for a drug sale, she texted again to set up a meeting at a store, according to the affidavit. The document says the informant received $800 to make a purchase, meeting investigators later with 10 pills of 80-milligram Oxycontin.

A second purchase was made the following day, authorities said. This time the informant wore a hidden camera and a microphone.

Interesting. This little sting was percolating the entire post convention portion of the election. Sounds like they had Johnston cold from the first controlled sale, which if the article is correct, appears to have been made on October 11, and certainly by the following day when they made the second controlled transaction. A skeptic might think that it was ripe for arrest during the election, like say anytime after October 12; and might wonder why it was extended into late December for arrest.

Well, gee whiz, lookee here! From the Washington Post:

The trooper’s affidavit indicates that Sarah Palin’s candidacy factored into the investigation, with state officials delaying execution of a search warrant until this month, when Johnston was "no longer under the protection or surveillance of the Secret Service."

Who could have ever predicted this? I wonder what role John McCain and Sarah Palin played in this admitted political delay? What role did the Read more

Don’t Be So Fast to Refer to Palin’s “Son-in-Law”

A number of people in the blogosphere have pointed out that Governor Palin–or more accurately, her daughter Bristol–has been palin’ around with drug dealers. Remember Levi Johnston, the guy they trotted out as a prop at the Republican convention as the father of Bristol’s baby? Well, his mom got busted yesterday; reports suggest she had a meth lab in her house (don’t forget, Wasilla is Alaska’s crystal meth capital).

Well, that’s fascinating enough. But I’m just as fascinated by the absence, in ADN’s reporting, of any mention of an imminent wedding.

Johnston is the mother of Levi Johnston, the Wasilla 18-year-old who received international attention in September when Gov. Sarah Palin and her husband, Todd, announced their teenage daughter was pregnant and he was the father. Bristol Palin, 18, is due on Saturday, according to a recent interview with the governor’s father, Chuck Heath.

[snip]

Levi Johnston sat with Bristol and the rest of the Palin family in St. Paul, Minn., during Gov. Palin’s speech to the Republican National Convention, and he joined the family on the stage afterwards.

When Levi was rolled out in early September, it was always in the context of an upcoming wedding.

In other words, I’m not convinced there’re still plans for Sarah Palin to become Levi’s mother-in-law (emphasis on law, here). Don’t tell me the claim they were getting married was just a politically convenient claim?

Well, in any case, for those of you who had "Charlie Crist" in the politically convenient marriage pool, you may now collect on your earnings. 

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