Today’s L.A. Times headlines "Investigation details deals at CalPERS." March 15, 2011 in a lengthily account by reporters Marc Lifsher and Stuart Pfeifer had this to say.

" While at CalPERS, Buenrosto [ CEO] repeated " inserted himself into the investment process in a manner inconsistent wit prior practice at CalPERS, pressing its investment staff to pursue particular investments without evident regard for their financial merits."

It is said Buenrostro intervened with staff on behalf of Aurora Capital Group of Los Angeles [ Gerald Parksy] to obtain investment money. Buenrostro told subordinates that Aurora was politically powerful, and that Aurora principal Gerald Parsky served on a state commission [appointed by Gov Schwartznegger] dealing with public employee benefits, the report said."

Aurora was a Villalbos [principal figure of the probe], and Buenrostro told the board, and those complaints "become a basis for the board’s efforts to replace him as CEO," the report said."

CalPERS is the nation’s largest public pension fund, with @228… Read More

Treasury Bonds: I learned something last week. I learned that fully 40% of the over $9 trillion in Treasury debt currently outstanding to the public has a maturity of 3 years or less. Put another way, it means that we are rapidly approaching $4 trillion in U.S. debt that matures by 2014 or sooner. As I write this, the yield (interest rate paid) on a 2-year Treasury note is 0.645% or about 2/3 of one percent. The yield, at the same time, on a 10 year Treasury note is 3.4%, and on a 30 year is 4.55%. In bond parlance, this is called a "steep yield curve" where interest rates get much higher as you go farther out in time.

It’s pretty clear why the Treasury is doing this. By issuing mostly short-term notes, the Treasury is paying less interest, thereby keeping interest costs and, consequently, the deficit down. In addition, the Federal Reserve is in the middle of its "quantitative easing #2" (QE2) under which it is buying $600 billion of our own Treasury debt over about a 6 month period. The Fed is not buying the short-term notes, but is buying 10 year maturities and longer in order to hold those rates down.… Read More

From today’s Wall Street Journal Political Diary E-mail… … Read More

The Sacramento Bee’s Capitol Alert Blog is reporting this morning that Assembly Republican Leader Connie Conway, who apparently spoke with some of the "Rogue 5" GOP State Senators, that their negotiations with Governor Brown craft a budget deal have broken off.

Specifically (excerpted from Capitol Alert):

George Skelton’s column in the LAT tomorrow is the latest in pricelesslypathetic analysis of the GOP’s position in the current budget talks. Is it just senility on his part? Selective memory? I mean, what could it possibly be? Let me remind everyone: the voters in California have spoken. They have rejected and repudiated Republican ideas as thoroughly as they can be rejected. November, 2010 was a slaughter. Georgie – Californians don’t want our freaking input, okay? Do I need to send you the numbers again?

The only reason the MSM wants Republicans at the table at all is to share the blame for the inevitable non solution that will come out of these latest budget talks, and it appears at least five of our knuckleheads are at least considering being useful idiots for the California welfare State, again. The GOP is only wanted to provide votes for high taxes. That is it.

Hey people! How did we get here in the first… Read More

It’s no surprise that members of the Oceanside City Council don’t like the idea of their city being labeled a “predatory community.” Yet, that’s the reference George Skelton used in a February Los Angeles Times column to describe Oceanside and other California cities that have imposed “crash tax” ordinances, including Carpinteria, Costa Mesa, Fullerton, Garden Grove, Hemet, Petaluma, Redlands, Ripon, Roseville, Sacramento, San Bernardino, Stockton, Tracy, Woodland and several others.

The crash tax is generally defined as a fee imposed on those getting in an accident that results in the dispatch of paramedics, firefighters or other emergency responders. Some cities impose it only on visitors or those “traveling through,” not their own residents.

Very inviting.

Many are calling it double taxation. State Senator Tony Strickland has introduced legislation, SB 49, that would ban the… Read More

Last night I received an email from Celeste Greig, President of the California Republican Assembly (dubbed the conscience of the GOP) — who informed me that on behalf of the CRA, she has introduced two resolutions for consideration at next weekend’s California Republican Party Convention.

The first one, immediately below, is pretty self-expla

natory. This is a resolution that would seek to condemn and censure GOP legislators that vote to put taxes on a June special election ballot. Greig actually leaves blank spaces in this resolution so that, if necessary, the names can be added in…

California Republican Party… Read More

The news of the announcement of the candidacy of Ray Haynes for Treasurer coursed through the political circles of the California Republican Party yesterday. Overwhelmingly the news was met with much excitement and enthusiasm. Current party Treasurer Keith Carlson is term-limited out (and running for the State Assembly in 2012) and there was a potential void in strong leadership in this critical party post.

Ray Haynes of course enjoys broad support in the party as a longtime respected leader. He is well known and well regarded by grassroots activists, county party leaders, volunteer organizations, party donors and of course is well known in the State Capitol (Haynes served for six years in the State Assembly and eight years in the State Senate where he was known as a conservative leader in both caucuses).

I penned the following letter to CRP members that I sent out last night…… Read More