GREED v. POWER: WHAT CAUSED FISCAL CRISIS IN AMERICA

Los Angeles CA. Full Disclosure Network® presents B. Scott Minerd, Chief Investment Officer of Guggenheim Partners provides his insight on many of the critical issues facing America and California in a one hour video interview for cable television conducted by Leslie Dutton.

Guggenheim Partners is a diversified financial services firm with more than $100 billion in assets under supervision. Previously he was a managing director for Morgan Stanley and later Credit Suisse, where he oversaw fixed income credit trading in the United States, Europe and Asia.
In the six segments presented here Mr. Minerd outlines the causes, effects and solutions to the financial crisis that emerged in late 2008 at the end of the Republican Administration of George W. Bush and is now escalating under the Democrat Administration of President Barack Hussein Obama.

Segment #1 Insolvency, Public Indebtedness, Sale of Public Assets (8 min)
Scott Minerd describes government “solvency” and comments on the current threat of state and local “insolvency” and possible solutions. Other issues covered are: Toll Roads, Electorate Ignorance, Education, Lease Backs, Legislative Priorities, Public Unions

Segment #2 Federal Intervention, Regulations, Fees & Taxes (8 min)
Minerd points to where government has re-paid massive debt in the past and offers confidence in the electorate’s backing for such measures, while elected officials appear to be disinterested in supporting the solutions needed to resolve the crisis. Other issues covered here are: Socialism, Free Market Capitalism, Massive Inflation, Fed Policies, Individual Responsibility, Creation of Crisis

Segment #3 Government Subsidies, Accountability, TARP (8 min)
It is impossible to expect that government is capable of providing accountability on the massive TARP programs and “bail-outs” according to Minerd who discusses allocating capital efficiently in a Free Market vs government environment. He maintains that fraudulent behavior should be punished to the extent of the law. Other issues covered: Housing Market Collapse, Victim Mentality, Fraudulent Behavior, Free Market Solutions, Government Subsidies, Unethical Activity

Segment #4 Personal Responsibility & Political Correctness (8 min)
Vote-hungry politicians rush to exploit irresponsible homebuyers with promises of government charity that created exorbitant home prices and homeowners without ability to pay the generous irresponsible lenders. This is a short summary of Scott Minerd’s assessment of the current predicament and collapse of the housing market. Other issues covered: Personal Responsibility, Manipulating the System, Lower Living Standards.

Segment #5 Responsibility, Government vs Private Sectors, False Promises (8 min)
Scott Minerd describes how management failed the American automobile industry and now, elected officials are failing the public employee sector. He predicts a massive crisis at the local level when lifetime health care benefits start to kick in for public employees threatening the solvency of municipalities and school districts. He describes what he says are “easy” solutions to the momentous problems. Other issues covered: Business Exodus, Higher Taxes vs Raise Retirement Age

Segment #6 Solutions: Greed vs. Power, The Decline of America (8 min)
In this final segment Scott Minerd summarizes the long-term crisis facing U.S. cities and schools, where costs will outstrip ability of pay. He points to the cause of the crisis and the role of the Federal Government. Then he predicts what will happen if the policies are allowed to continue without reversal or limitation.

Please let us know what you think about the following questions by posting in the comment section below.

1. Do you think the current economic emergency could result in interventions that could lead to the end our American way of life?


2. Do you think that it is unrestricted Free market Capitalism or Government Policies that are encouraging lenders to make bad loans?

Scott Minerd On: California Bankruptcy, Insolvency & Where To From Here? ........... Video (11 min)

Los Angeles, CA. According to public finance expert B. Scott Minerd, California is not yet insolvent but it could be soon. In an eleven minute Full Disclosure Network® video news blog he addresses the issues of how California got to the brink of financial disaster and offers suggestions as to how the once golden state could return to a prosperous and stable economy.

Scott Minerd is Chief Investment Officer of Guggenheim Partners, a diversified financial services firm with more than $100 billion in assets under supervision. Previously he was a managing director for Morgan Stanley and later Credit Suisse, where he oversaw fixed income credit trading in the United States, Europe and Asia.

In the video Scott Minerd describes the most serious threat to California solvency, at both the state and municipal level, is the massive unfunded pensions and post retirement health care benefits promised to public employees in union contracts.

Pointing out that California public officials have missed opportunities to reserve past surpluses, Scott Minerd describes public debt instruments known as "Certificates of Participation" (non-voter approved COP Bonds) and Revenue Anticipation Notes (RAN) as tactics that can result in squandering of public assets to cover massive deficits while the economy is stagnate. He urges public entitites to protect surpluses when they ocurr, for use in an economic turn down.

The entire one-hour interview with Scott Minerd is to be featured on the Full Disclosure Network® website as well as on community television channels throughout California and in cities in Minnesota, Wisconsin, New York, Massachusetts, Pennsylvania,Texas and Washington D.C.

Public Pension Crisis: The Ticking Time Bomb. Cable TV Series (12 min Video Preview Here)

CABLE TV SERIES WARNS OF IMPENDING CRISIS

Los Angeles, CA Following a panel discussion entitled: "The Ticking Time Bomb" at the Milken Institute's State of the State Conference in the fall of 2006, the first public predictions regarding the "unfunded public employee retirement benefits of $300 to $400 billion are revealed"

The Full Disclosure Network® presents a two-part cable tv series that includes an exclusive interview with public finance expert B. Scott Minerd, CEO Guggernheim Partners Asset Managment who provides insight and analysis on the looming financial disaster in California. DVDs of the complete series are available from the website. A twelve minute video preview from the series is available here.

Featured in the series are:

• B. Scott Minerd, CEO Guggenheim Partners Asset Management
• Hon. Keith Richman, Calif. State Assembly
• Carl De Maio, CEO Performance Institute
• Jack Ehnes, CEO CALSTERS Pension System
• Dave Low, CA School Employees Association
• Barbara Lloyd, Sr. VP Lehman Brothers
  
  
  Here are hightlights from each segment: of the series:
  
  
  Segment #1: When serving as Managing Director of Credit Suisse Scott Minerd described how he exposed the risky derivative securities which directly led to the liquidation of the Orange County investment portfolio and the county's subsequent bankruptcy."
  
  Segment #2: Will Municipal bankruptcies spread across California? Minerd suggests that pension benefit debt is unanticipated by the public and bond rating companies. The $300-$400 billion debt is "present value" but Minerd adds" the actual sum is more likely a trillion dollars."
  
  Segment #3: Assemblyman Keith Richman cites San Diego, Contra Costa and Orange Counties have billions in unfunded public employee pension benefits. Minerd suggestions to head off crisis. (1) Attempt to fund now (2) Ignore and pay as you go (3) Break promises made to public employees by redefining benefits, employees work longer, caps on benefits.
  
  Segment #4: Carl DeMaio CEO Performance Institute cites retroactive benefits approved by elected officials, and pension benefit debt is $130 billion before unfunded health care benefits that is three times all outstanding debt now in California. Keith Richman cites State Legislative Analyst reports that School Districts are likely to go bankrupt.
  
  Segment #5: Only ten percent of Counties have funded or partially funded public employee benefit plans. Plans include coverage for spouses, survivors even after medicare age, according to Barbara Lloyd, Sr. VP Lehman Bros.
  
  Segment #6: 2006 Infrastructure Bonds of $40 billion to cost $40 billion in interest. Minerd suggests that when voters approved the bonds "all it did was allow the state to spend more on other things and not to address the true fiscal issues."