The Pension Benefit Guaranty Corporation was set up by the government as a conservative insurer of company pension plans. They took in insurance premiums, held them safe, and then would pay out if the company went bankrupt and couldn't pay their pensions.
Cool. Good idea. No problem with that. That's what government should do.
[Oh, wait. What's that? No. You're kidding me. From Lehman? Via Rudy's office? You've got to be kidding me. No, seriously, you have to be f*cking with me. No? Oh, crap.]
So, this just in. What happens when a gambling monkey from Lehman Brothers gets a hold of the PBGC, and decides in Fall of 2007 to move half of their $64 billion in holdings from rock-solid government bonds into risky stocks AT THE VERY PEAK OF THE STOCK MARKET BUBBLE?
Disaster. Total economic disaster.
And the next big story that will be heading your way, as the pension plans of GM and Chrysler and so many other dying companies go bust, at the same time the PBGC, because of the stupid and likely illegal or corrupt decisions of its now-former-monkey, Charles E.F. Millard, with the blessing of the Bush Administration (yes, Hank Paulson) and a clueless and corrupt Congress (yes, Chris Dodd and Barney Frank) goes bust too.
And the taxpayer is left (again) to pick up the tab.
CAN WE GET A FREAKING INDEPENDENT SPECIAL PROSECUTOR OVER HERE OBAMA? HOW MUCH MORE DO YOU NEED?
Pension insurer shifted to stocks - Concern increases as losses mount; Failing plans could overwhelm agency
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 truth is, this could be huge," said Zvi Bodie, a Boston University finance professor who in 2002 advised the agency to rely almost entirely on bonds. "This has the potential to be another several hundred billion dollars. If the auto companies go under, they have huge unfunded liabilities" in pension plans that would be passed on to the agency.
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Suprisssse Suprisssse Suprisssse
Hmmm, have a look at this: http://www.reuters.com/article/topNews/idUSTRE52U1YY20090331
Here's how it probably went down:
"Hey, guess what guys! Great news! I got a hold of $30 billion more for us! So I'll give it to Lehman and Goldman Sachs and you guys lever it up 40 times and go to town!!! That's another $1.2 trillion we can play with! Yippee!! Bonuses for EVERYONE!!"
This is getting fun now
Keith,
The real big elephant is what happens
when Arnie goes after CALPERS, UCRP and
other CA based pension funds. First, there might not be anything there. Second, if there is, the "Rapacious A" (Arnie) may raid whats left.
Secondary effects include Fed raids on individual 401's and requirements to buy or convert to "victory bonds" or some such.
Charles E.F. Millard
The E.F. stands for "Evil Fucker"
Now let me guess. At some point he'll give an interview to a bimbo reporter and he will say words to the effect,"No one could have ever seen this coming. In retrospective, would I have done things differently? Of course I would. BUt you can't live your live backwards. You have to live your life forwards. By the way, I'm getting hungry. Does anyone have a banana?"
This is just another in a long series of desperate actions Paulson & Co. took to off-set the losses incurred by the 'investment bank' ponzi operators.
The well-connected 'shadow' gamblers had decided it was time to exit the crooked Wall Street casino and they DEMANDED to be 'made whole'-- at the expense of the general public.
The Goldman shill 'operatives' did the dirty deeds they were sent to do.
They gamed the system.
They sold the country down the river.
They are traitors.
They deserve the death penalty.
Not quite.... they actually haven't begun much of the diversification, and actually, a long term portfolio of 55% stock/real estate is rather prudent. I don't have a problem with this especially since they are buying in over time at lowered prices.
what you are witnessing keith is the rape of the american pension fund system. all the money that was in there, is systematically being stolen and sent to israel. so i ask you. you have these older workers about to retire. what are they going to do? or how about the ones that are retired? what are they going to do. they depend on that money just to live. this nation is in very, very serious trouble as the way of life we have known for so long, that would have to be called intrisically american is forever changed and the dirty little secret is , that it is all by plan and this nation as we have known it will never be the same. we are going into terrible times, when we will have the ultimate choice. fight or die.......
Things will be so bad three years from now that at least 50% of US citizens will depend on the government for survival either by government job, bailed out pension, welfare, etc.
OK, this made me sick..
It keeps getting worse. Keith, I would probably be in a straight jacket if I hadn't been following your blog since 07'. The foxes raided the hen house. Now, we are seeing the blood and feathers, but everyone is in denial. Or, they are coming out of denial and getting angry.
I'm one of the losers because I get notice that I have to stand in line with BK proceedings regarding money that is owed to me .The gamblers blew the money no doubt and fat chance I get anything while the chosen investment class
has already looted printed money .
Doesn't it sound wrong that a guy like Hank Paulson and people of his elk got to choose who was going to be a winnner and
who was going to be a loser .Doesn't sound like the American way to me , I always thought the laws determined who would win and who would eat it .
Isn't this a violation of the Constitution when tugs pick and choose who the bagholders are ?
The lawmakers can make new laws ,but can they violate the Constitution and retro laws and discriminate on which gamblers get bailed out ? Seems to me that the Powers that be have seized the government coffers and in the name of emergency are picking and choosing who gets the money .
I'm going to be a loser ,in spite of always paying my bills and being conservative . I'm to old to make a rip roaring come back .
Make no mistake ,the high level investment class are winners along with the gamblers that rigged the system to begin with .
In 1929 ,I really don't think that the government would of bailed out the Wall Street Gambling Firms and rich people jumped from buildings . Banks went belly up and there was no FDIC to bail out the poor people who had their life savings in the bank .
"...the dirty little secret is that it is all by plan...we are seeing the blood and feathers, but everyone is in denial..."
Knowing this while most don't makes me long for ignorance as well.
The thought of reality is so frightening for most that all they can do is grunt the workday away and then collapse into distraction. The LAST thing anyone wants to do at 5pm(6, 7?) is to scrutinize the big picture.
They've got us RIGHT WHERE THEY WANT US.
Our government has morphed into a system where conflicts of interest are not only condoned, but are 'worn' like badges of honor.
The TARP acronym should be changed to SGSAAC -- Save Goldman Sachs At All Costs.
Apparently, GS has been 'awarded' a special 'national security' clearance.
Has the DOJ also created a too-corrupt-to-prosecute category to accomodate Goldman's 'legalized' crime spree?
Our government has morphed into a system where conflicts of interest are not only condoned, but 'worn' like badges of honor.
The TARP acronym should be changed to SGSAAC -- Save Goldman Sachs At All Costs.
Apparently, GS has been awarded a special immunity.
Has the DOJ been 'advised' to create a too-big-to-bust category to accomodate Goldman's legalized crime spree?
Anonymous Anonymous said...
"...the dirty little secret is that it is all by plan...we are seeing the blood and feathers, but everyone is in denial..."
Knowing this while most don't makes me long for ignorance as well.
The thought of reality is so frightening for most that all they can do is grunt the workday away and then collapse into distraction. The LAST thing anyone wants to do at 5pm(6, 7?) is to scrutinize the big picture.
They've got us RIGHT WHERE THEY WANT US.
March 31, 2009 3:57 PM<<<
yes we can still revolt. but will we? that is the question.
Fireman and Public Employees repeat after me:
"Do you want fries with that?"
You're Welcome.
"What happens when a gambling monkey from Lehman Brothers gets a hold of the PBGC, and decides in Fall of 2007 to move half of their $64 billion in holdings from rock-solid government bonds into risky stocks AT THE VERY PEAK OF THE STOCK MARKET BUBBLE"
Heh Heh. The Chimperator sure knew how to pick gems for his staff. I hope all you f*ckers who voted for Bush in 2000 and 2004 are
left holding the bag.
Everything the government gets involved with turns to sh-t so why should we expect anything else with the PBGC?
Join the Washington National Debt Revolt – Washington created it and gave it away to Wall Street, the banking elites and now Democrat Party special interests.
Honest working Americans and our children and grandchildren will find themselves impoverished by the national debt created by Congress to help their friends
and supporters.
Why should we have our real estate and investment values destroyed by the Washington/Wall Street elites while they get a bailout and we
have to pay for their mistakes and greed.
If you’ve had enough, join the Campaign to Cancel the Washington National Debt By Constitutional Amendment.
See the following URL for more information: http://www.facebook.com/group.php?gid=67594690498&ref=ts
He looks like one of those dickhead white frat boys who would have raped a couple of chicks in college while they were drunk at the frat party. Those f'in blue, piercing eyes scare the hell out of me.
BG
Someone should redo Lil Wayne "A Million" song to "A Billion" for the govt bailouts
A Billion
a billion
a billion
a billion here
a billion there . . .
yes we can still revolt. but will we? that is the question.
Revolt? GEE, good idea.
Let's burn down half the country, so we have EVEN LESS wealth than we've already lost.
Let's disrupt the financial system EVEN MORE than it's already been disrupted.
Let's take charge of the government, so WE'RE the ones held responsible by the ignorant idiot masses when things get EVEN WORSE than the already are.
Let's make the food supply, electrical grid, oil supply EVEN MORE unstable than it already is.
Good idea!
If you talking about a simple coup, a discontinuing of presidential elections, well Bush/Cheney/McCain already tried that. But when Bush put troops near DC to "keep order" in violation of Posse Commitatus, and then McCain said "I'm stopping the campaign, let's postpone the debate", Obama's team knew what was going to happen so he said "I'll be waiting in Mississippi, be there or be square."
So the election went on as originally scheduled.
This was planned. No way is anyone going to lounge on the beach and collect a check.
I suspect They want to "Balkanize" the US. They won't be happy untill we are a Third World country.
'Revolt doesn't have to mean you become violent . Marches like King did might be the way to go .
Not only did the Bail-outs Obstruct Justice and change the bagholders to the taxpayers,but the bail-outs to the Chosen will create a moral hazard like the corrupt has never seen before .
But ,you can protest without violence or destruction . Because this time the Great Majority are really getting their toes stepped on ,the sheer numbers of people that will be unhappy is increasing .
Lets face it ,people are just beginning to understand that they were fleeced by crooked politicians and fat cats .
It gets real bad when your hard earned savings are taken by people who already have a bunch of money .
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