It is the prerogative of many from the Left (and unfortunately, some from my own party) to demagogue Wall Street and anyone who has ever worked on or near it. When two of your top candidates – Harry Wilson and David Malpass – have ties to Wall Street, it’s also easy to score cheap political points.
Yeah, I know I’m suppose to hate and resent them for having more money than I do, and think that because they do it makes them evil and corrupt by default and they owe me some of it. Instead, considering the mess the state and country is in financially, I prefer having people in charge who know what they’re talking aboot. The economy is a mess, having people who understand the economy is a good thing…yes, even if they have ties to Wall Street.
Both challengers recently called out their opponents. First was Mr. Wilson taking on some of the budget tricks the current comptroller endorses and/or not endorses depending on what day of the week it is…
It has been reported that these scenarios are based on the State Comptroller’s expectation that pension returns going forward will mirror returns from the period after the 1987 market crash. If those reports are correct, based on the current portfolio mix of the pension fund, the Dow Jones Industrial Average would have to hit 80,000 by 2022. If, instead, the Fund is basing its projections on its current, but also overly aggressive, 8% return assumption, then the Dow would have to hit nearly 30,000 by 2022. Both of these return scenarios dramatically exceed recent history and the expectations of professional investors. This enormous disparity highlights how important the Comptroller’s assumptions are to the policy debate, and he should provide transparency so that voters can evaluate exactly what he is proposing.
Then there’s David Malpass speaking out against the Senate “Reform” Bill that, even though many NY Dems in the House don’t want, current Sen. Kristen Gilligan fully supports…even though it might effect the NY economy in kind of a not good way. Malpass provides both criticism and solutions…
“Fannie Mae and Freddie Mac are out of control and running an open tab on taxpayers,” said Mr. Malpass. “The government takeover of the housing loan industry will wind up being one of the most costly expansions of Washington power to date, yet the financial reform bill in Congress does nothing to address these money-losing institutions. I am calling on Washington leaders, and Senator Gillibrand, to halt movement of this bill until they address reforms to the programs that are costing taxpayers billions of dollars per week.”
Some proposed reforms include:
-Place a receiver, not a conservator, in charge. It should have the power to create a good bank/bad bank structure for isolating the bad assets;
-Create a plan to privatize or liquidate the institutions;
-Record losses in the national deficit. Properly account for accumulated losses the national debt;
-Place a cap on the size of the institutions portfolios and gradually reduce it; and
-Ban political contributions in line with bans by other government.
But like, they took money from Wall Street or something. That means they’re bad.