Bush official shifted insurer's billions into stocks just before crash

[babsbunny]

http://rawstory.com/blog/2009/03/pension-fund-shifted-billions-into-stocks-just-before-crash/

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. ...

Analysts expressed concern that large portions of the trust fund might have been lost at a time when many private pension plans are suffering major losses. The guarantee fund would be the only way to cover the plans if their companies go into bankruptcy.

And who was responsible, exactly?

[elehhhhna]

1. RICO, baby. Sic 'em!

[burythehatchet]

2. Since I am Conspiracy Theorist Number 1, my guess would be that this was done

to try and keep the market bubble inflated until the election. Just as that was the intent of Social Security privatization.

[Warpy]

3. that would be my guess, too

because there is no other reason, logical or illogical, to shift that kind of money so quickly in that direction.

Face it, the market has been overvalued since the 90s and 100% of Stupid's economic plan was geared toward propping up the market by funneling money to the rich and facilitating easy profit, sacrificing the American people and quite possibly bankrupting the country to do so.

Instead of simply allowing the market to correct, they have come close to destroying all of us.

[L. Coyote]

5. Or, it was done to float specific stocks during crony sell-offs so

the cronies of the corrupt could pocket huge profits all nice and "legal-like" when devaluation was otherwise imminent?? That fit criminal better!

[hootinholler]

14. THat one's worth looking into

I wonder if the buy orders are available via FOIA

-Hoot

[L. Coyote]

15. Who knew what was toxic when?

[Piewhacket]

6. Until the election?

Er why was that needed? It was already over.
The meltdown was evident in September, wasn't it? To us pedestrians that is.
The election was over by the time this went down, smart money knew it,
and was executing their escape. That's why McCain's campaign became such a joke.

But such a large exit required some cover. This wasn't much $, as these things go,
alas the SSN looting plan didn't work out. Still, any port in a $torm.

Intended to support the market, sure. But just looks too much like simple looting to me.
Anyway, one problem is, how can we tell the corrupt scum who were complicit in the
scam from the shrewd and savvy money manager who merely took advantage?
We should follow the money heading for the exit. Timing is everything.
Follow the money.

Conspiracy is a tricky biz, No.1 , when dealing at this level.

Signed,
No. 0

[aquart]

7. I will buy that one completely.

So that's something else they botched.

[malaise]

8. Ding DIng

We have a winner.

RICO!!!!!

[Politicalboi]

9. I thought I was the

Number 1 conspiracy theorist? :tinfoilhat:

[FiveGoodMen]

10. That's what they WANT you to think!

[burythehatchet]

11. lol

good one!

:thumbsup:

[ddeclue]

13. Except that 64 billion is pocket change in this mess..I'm not sure it would even get noticed..nt

[CreekDog]

4. sounds like he didn't dollar-cost-average the shift either

and this guy was managing pension funds??? :wtf:

at least if he were doing it that way, he would have bought a lot less high priced stock and a lot more low priced stock along the way. sheesh!

[applegrove]

12. That is awful.

[guruoo]

16. k&r