Who is contributing to
House Majority Leader John Boehner's coffers?
Mish's Global Economic Trends Analysis blog has some interesting information about a bill being championed by Boehner that would lift a barrier to firms that run 401(k) retirement plans that keeps them from giving employees investment advice if they stand to benefit financially. Read on...
The LaTimes reports:
House leaders want to eliminate a longtime safeguard against conflicts of interest in retirement planning, creating a major sticking point in efforts to overhaul the U.S. pension system. [snip]
The change would allow mutual fund companies such as Fidelity Investments to both manage 401(k) plans and advise workers to steer payroll deductions into their own funds. (emphasis added)
Boehner said his proposal would make it easier for workers to get professional investment advice. As more companies abandon their traditional pensions, there is widespread agreement that people need help to ensure that their 401(k) accounts will meet their needs in retirement.
Unbelievably, Boehner uses Enron and Worldcom to illustrate how investors need
"quality advice to help them make sound investment decisions about their retirement future, and the House approach provides an important new retirement benefit to working families."
Mish asks, "Excuse me but who was recommending Enron?"
My recollection is that there was not a single sell recommendation by any major wall street brokerage until after Enron had lost over 95% of its valuation. Now we see Boehner using both Enron and Worldcom as a reason FOR letting the fox guard the henhouse. Oh the Irony.
Please someone tell me how much the brokerage houses have pumped into Boehner's campaign chest. The fact remains that no timely sell signals were isssued on Enron, Worldcom, Kmart, and now GM.
This is an important (and very long) article that is worth your time. Along with some history to jog your memory, Mish gives some warnings that you might want to pay heed to. We live in perilous times, fellow Kossacks...
Read the article, and then follow Mish's advice: "If you want the fox guarding the henhouse then please write your senator or congressman and tell them it is OK with you. If not, please send them an appropriate message. Yes, you have my permission to be blunt."
Mish's Global Economic Analysis Trends