THE GOP LOVES TO GAMBLE

Beginning in 2005, there were many signs that American's pensions were in trouble and that the the Pension Benefit Guaranty Corp. could not meet its obligations to backup failed pension plans. (here, here and here)

Now we learn that PBGC decided to "double down" just before the stock market went South:

Pension insurer shifted to stocks
Concern increases as losses mount; Failing plans could overwhelm agency
By Michael Kranish
Globe Staff / March 30, 2009

WASHINGTON - Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

The man most responsible for this move has taken a long view of the problem, kind of like former Pres. Bush's long view of the effects of the Iraq War:

Asked whether the strategy was a mistake, given the subsequent declines in stocks and real estate, Millard said, "Ask me in 20 years. The question is whether policymakers will have the fortitude to stick with it."