Ty Fahner of the Civic Committee of the Commercial Club of Chicago admits to rigging the Illinois bond rating. Hundreds of millions of dollars in additional profits will thus be made by pushing down the bond ratings which inflates the interest rates for the investors in the audience. (The CCCCC is a private club of multimillionaires and billionaires – plutocrats.)
“The Civic Committee, not me, but me and some of the people that make up the Civic Committee… did meet with and call – in one case in person – and a couple of calls to Moody’s and Fitch and Standard & Poors, and say ‘How in the hell can you guys do this?’”
Pat Herrmann, a retired Illinois teacher and pension advocate, presents this fully documented post of who, what, where, why and how it was done. Her conclusion about the overall meaning needs to be shared and re-shared.
Yesterday we saw evidence the fat cats at The Club intervened in having the ratings agencies push down the bond ratings to put political pressure on Illinoisans to take away our pension benefits.
Watch and listen here at the 46:30 point for the full purpose of the rigging and at 47:35 to 49:43 for Fahner’s admission and related remarks.
More on that today:
And of course the fat cats make out in two ways. (1) They get to buy bonds at inflated interest rates making more money for themselves since they were the ones most likely to have the money to buy the bonds, (2) and they get the benefits of austerity economics that drives down the costs of all labor. They get cheaper teachers for example and it drives down the wages of other public services that then has a collateral effect on the rest of the laboring economy. The manipulated fear creates a bottom economy that helps the rich buy lower in a fear economy and sell higher later when they create a boom. Their manipulations create profit for them and extract costs for us as we labor for less during our working years and struggle in retirement.
They call it “free market” and the only free market about it, is they manipulate the market. More people wanted to buy those bonds than there were bonds to sell, usually meaning in a truly free market that the interest rate would go down if there were truly a free bidding war. It was a rigged market, the buyers got lower rated bonds that were actually a safer investment than the rigged ratings indicated and the citizens of Illinois ended up paying higher interest rates for that money.
And the propaganda of the rigged ratings was great for the fat cats as it created fear in the population of Illinois residents which causes political pressure to “do something” and since the fat cats own the media, the Trib spells out that the thing to do is steal from the pensions of Illinois’ public employees. Why? Because the ratings agencies…
It is really a kind of treason, as it works against the public good. And we need to understand it and call them out. We need to understand it and not be afraid. They are really Crooks and Liars, speaking of which:
Warning the titles always mean something wonderful for the worker because it is always about deception. The dirt is in the details. :
It’s about turning pensions over to 401ks so Wall Street can make about 2/3 of the gains on the money by taking buried fees and the worker only gets about 1/3 of the gains on the money in retirement. It’s legal theft. A ruse that is stealing retirement security from millions of our fellow Americans and they want to do it to us too. The administrative costs on public pension money are tiny in the big picture and that is what they are after. Public pensions are a big bang for the buck for pensioners and indirectly the citizens of Illinois when we look at the ratio of administrative costs v returns to the system. Wall Street wants to control the investment money for the fees. They keep saying we need to turn to 401ks like the private sector. What we need to do is expose the 401ks as bad for the private sector workers too, because we are really all in this together. It is about the common good.
So what can you do? Join the ALEC protest: