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    So tell me about Richard Mourdock (Indiana)

    So tell me about Richard Mourdock (Indiana)

    Richard Mourdock has been suggested by reader Listkeeper in the Tip Line as a possible Focus for his primary challenge to Richard Lugar.  He has the backing of the Indiana Tea Party.

    HuffPo says this is the only remaining Senate race where a Tea Party backed candidate has a chance or knocking off a Republican incumbent, but that he is struggling in fundraising and gaining traction.  He did pick up a FreedomWorks endorsement in late October.

    Questions:  What do you know about him? How would he do in the general election against Democratic Rep. Joe Donnelly?

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    JennyLynn | November 14, 2011 at 10:58 am

    @gad-fly Sir, that last point you make is wrong. He is not up in any of the polls. In fact, he can’t even get over 50% in his home county of Marion. Check your facts before you post garbage.


     
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    inlafayette | November 14, 2011 at 11:14 pm

    Gad-fly is confused on the underlying issues regarding the purchase of the Chrysler debt by the Indiana State Police Pension fund.

    In the course of a bankruptcy and re-organization, the purchase of debt as an investment is not “wild speculation and reckless”, as long as Government upholds the rules of the game.

    The Indiana State Police Pension Fund bought the Chrysler investment at a discount and factored in the liquidation value of the investment in a “normal” bankruptcy. The problem came about when Government changed the rules.

    This intervention of Government was a violation of the law for the clear purpose of preventing secured creditors like the Fund from being paid first, before any other creditors were paid (i.e., the unions).

    This unprecedented violation of established US bankruptcy law could not have been anticipated at the time the debt was purchased.

    Regarding risk, the Pension Fund is a $350 million dollar fund that is actually managed very conservatively as compared with other pension funds.

    It’s composition is majority bonds rather than stock. The Pension Fund managed to earn almost 20% return in FY 2011. See the report for yourself at

    http://www.in.gov/tos/files/11-10-19_-_Treasurer_Mourdock_Releases_Fiscal_Year_2011_Annual_Report.pdf

    and at http://www.in.gov/tos/files/20111026113043006.pdf

    Most of the people who comment on the Chrysler case have not done the homework to discover what actually happened.

    The bottom line is that the financial health of our economy depends upon the integrity of Government to uphold the law. When Government changes the rules at will, either to dispense political favor or for any other reason, then Government creates an economic climate where any and every investment becomes “wild speculation and reckless.”

    It is the disregard for the law that characterizes third-world countries, and it’s what keeps them that way.

    See the article in Harvard Business Review: Are Courts Becoming Less Friendly to Distress Investors?
    http://blogs.law.harvard.edu/corpgov/2010/05/01/trend-spotting-%E2%80%94-are-courts-becoming-less-friendly-to-distress-investors/


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