Lucrative new sources from across the U.S. would help fund a fight over California’s voting districts and pension system, he says.
And who might those lucrative sources be and why would they give millions to Arnie?
Wall Street has an enormous stake in how Schwarzenegger proposes to transform California’s pension systems for teachers and state workers, now worth nearly $300 billion in combined assets.
Schwarzenegger’s plan would move new state employees into individual 401(k) investment plans by mid-2007. That means Wall Street investment houses would be able to work with tens of thousands of clients instead of just the handful of expert investors at CalPERS and CalSTRS, the two public pension systems. The windfall could be huge.
These very same Wall Street investment banks are such experts at managing pension funds that they bankrupted the Central States Teamsters Fund. Or perhaps “looted it” would be a more apt description.
This is the same crap that Bush is trying with Social Security “privatization.” Do you trust Wall Street to manage your retirement money? Well, of course you don’t.