For those who read Jill’s post below this one, please be advised that Ron Nehring’s proposal has now been altered to provide that any participant in a caucus who is away, on active duty, may have an alternative represent them. So while there are differences between the plan, both plans address the concern about active duty military personnel.

Clearly some electioneering was going on, as no attempt was made to get Nehring to take care of this concern before "going public" — this was just an effort to attack the Nehring plan. Nevertheless — the issue has now been addressed and is moot.… Read More

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

… Read More

March 15, 2011 … Read More

News items not only tell a story but they are often symbols of larger issues. Considering the following from recent new stories:

CalTrans that incompetent beast of a bureaucracy is closing down the only unpaved highway in California. Remember back when the California Department of Highways actually built highways? No consideration was given to paving the road which has served as not only access to remote mountains but has a major evacuation route for San Bernardino Mountain residents. Not only is small beautiful in modern California but apparently primitive is better. The Japanese people do not loot. Shocking to Americans, people in Japan are not taking criminal advantage of their neighbors property. While here in California looting the public treasury is a prime recreational sport. In one week CalPERS has heard how their executives steered investment money to friends for kickbacks, San Bernardino County Sheriff deputies falsified time cards to gain pay raises for classes they did not take, and San Bernardino County welfare workers steered welfare money to themselves and friends. Shameful behavior all around … 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):

"It’s my impression, after speaking to some of (the Senate Republicans), that the talks are done and over, and they walked away from the table," Conway said. "It’s their impression that, even though the governor seems willing, labor has said ‘no’ to all of the requests. So I think everybody left very unhappy from the table." … 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