Pennsylvania Treasurer Comments on Current Economic Climate

HARRISBURG, Pa., Sept 17, 2008 /PRNewswire-USNewswire via COMTEX/ -- Pennsylvania Treasurer Robin L. Wiessmann today issued the following open letter to Pennsylvanians:

Fellow Pennsylvanians,

Since late last summer, our nation has experienced considerable economic volatility and market turbulence, which continues to plague our economy. In this challenging economic climate, the Pennsylvania Treasury Department has been working tirelessly to protect and safeguard the Commonwealth's assets.

The latest in a recent string of upheavals on Wall Street came this past weekend, when our nation's financial system was shaken to its core by the news of Lehman Brothers' bankruptcy and the sale of Merrill Lynch.

While these actions were alarming due to their substantial impact on the structure of America's overall financial system, I am pleased to report that Treasury's investment professionals were well prepared to weather this latest storm. Proactive steps were taken over the last six months to minimize exposure to Lehman Brothers holdings. At close of market on Friday, September 12, 2008, Lehman Brothers holdings accounted for 0.05% of Treasury's approximately $18.7 billion in investments under management. Treasury has no Merrill Lynch and no AIG holdings in its portfolio.

Since my first day in office, it has been my goal as Pennsylvania Treasurer to provide effective stewardship of the Commonwealth's funds and investments through calm economic times as well as the rough seas we have been experiencing since last summer. That is why I made financial asset management a cornerstone of my agenda as your Treasurer.

Earlier this summer, I instructed Treasury staff to conduct a comprehensive investment and cash flow study, which resulted in the reallocation of $3.4 billion of the Treasury investment portfolio to ensure the liquidity and safety of the Commonwealth's funds, in addition to enhanced returns. My actions were guided by Treasury's stringent liquidity requirements because Treasury, as distinguished from the pension funds, is primarily a cash operation - we must be able to pay the Commonwealth's bills, especially as the economy continues to tighten.

In addition to securing and fortifying the Commonwealth's assets, we've been reviewing our Department budget in anticipation of the continuous weakening of the economy. We remain mindful of our own operations and will adjust our budget as necessary in this difficult fiscal environment.

We will continue to take precautions against any potential threats in the marketplace by maintaining our thorough portfolio reviews and remaining vigilant against future market threats.

Having worked on Wall Street for many years, I know first-hand that there is no way to know for certain where the markets are headed, but I am confident that we are conducting the necessary investment research and market analysis to safeguard the assets of Pennsylvania stakeholders.

SOURCE Pennsylvania Treasury Department

Dow Chemical Company Chairman & CEO to Address the Detroit Economic Club on a (New) Industrial Policy for the U.S.

DETROIT, Sept 17, 2008 /PRNewswire via COMTEX/ -- The Detroit Economic Club (DEC) is pleased to host Andrew Liveris, Chief Executive Officer & CEO of The Dow Chemical Company on Monday, September 22, 2008. The speech will begin at 12:30 p.m. and will be held at Cobo Center in Detroit, MI.

Mr. Liveris will discuss why the United States must construct a comprehensive industrial policy to restore vigor and strength to the American economy. He will outline the necessity to balance the needs for energy, the environment and manufacturing as the foundation to keep the US competitive in a world that is increasingly global, sophisticated and interdependent.

The Detroit Economic Club will also honor William Clay Ford, Jr. for his leadership as Chairman of the DEC from July 2005 through August 2008. The DEC will also welcome G. Richard Wagoner, Jr. (in absentia) as it's newly elected Chairman.

The meeting will conclude with a major announcement from the Detroit Economic Club.

The Detroit Economic Club was formed in 1934 as a platform for the discussion and debate of important business, government and social issues. It is known internationally as a top speaking forum for prominent business and government leaders, who address members and their guests at the Club's 35 meetings a season. With more than 3,000 members, the DEC is about vital issues, prominent voices, a commitment to education and inspiring leadership. The DEC is proud to have hosted every sitting U.S. President since Richard Nixon and proud to be ranked among the top speaking platforms in the world. Admission: $40 for DEC members, $50 for guests of members and $75 for nonmembers. Register at www.econclub.org.

SOURCE Detroit Economic Club

Economic Activity Shifts Campaigns' Focus to Wall Street

Calling Monday's economic climate the most serious financial crisis since the Great Depression, Democratic presidential nominee Sen. Barack Obama attacked Sen. John McCain, R-Ariz., for supporting what Obama called a failing economic philosophy.

On Sunday, the federal government declined to bail out Wall Street investment bank Lehman Brothers, another financial institution choked by the credit crisis. The ailing firm filed for bankruptcy this morning. Another Wall Street giant, Merrill Lynch & Co, narrowly avoided suffering the same fate by offering itself to Bank of America for sale.

While addressing a crowd in his first solo rally since adding Alaska Gov. Sarah Palin to the ticket, McCain acknowledged problems caused by the nation's economic state, but claimed the economy's "fundamentals" were sound.

"There's been tremendous turmoil in our financial markets in Wall Street and it is, people are frightened by these events," he said.

"Our economy, I think, still, the fundamentals of our economy are strong, but these are very, very difficult times and I promise you we will never put America in this position again," McCain continued, in an attempt to reassure the crowd.

During a campaign event in Grand Junction, Colo., Monday afternoon, Obama said that the news about Merrill Lynch and Lehman Brothers "offers more evidence that too many folks in Washington and on Wall Street weren't minding the store."

Obama said news of the Wall Street failures reminded him of the savings and loan crisis of the 1990s, when several of those financial institutions failed and thousands of businesses and families were financially ruined in the process. Obama told voters that, if they are comfortable with the current state of the U.S. economy, they would appreciate the position of his political rival, McCain.

"I certainly don't fault Sen. John McCain for these problems," the Illinois senator said.

"But I do fault the economic philosophy he subscribes to, because it's the same philosophy we've had for the last eight years," he added.

Obama accused McCain of having a hands-off approach to the financial crisis and maintaining a philosophy that says, "Even common sense regulations are unnecessary and unwise; one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crisis."

(ABC News)

Obama then seized upon remarks McCain made in Jacksonville, Fla., that same morning, to paint his opponent as out of touch. The Republican presidential nominee admitted the difficulty caused by the nation's economic state, but claimed the economy's "fundamentals" were sound.

"Sen. McCain -- what economy are you talking about?" Obama asked the audience.

"What's more fundamental than the ability to find a job that pays the bills and can raise a family?" Obama asked, his voice rising.

"What's more fundamental than knowing that your life savings is secure, and that you can retire with dignity? What's more fundamental than knowing that you'll have a roof over your head at the end of the day?"

Running Mates Weigh In

At a "Road to Victory" rally, Republican running mate Palin delivered her standard stump speech, but also acknowledged the recent news from Wall Street.

"This is an issue of real concern," Palin told the large crowd gathered in Golden, Colo.

But, she then pointed out, "I'm glad to see the Federal Reserve has said no to using taxpayer money for a bailout."

The self-professed "Hockey Mom" also discussed her family's small business experience, saying that she had, too, experienced the stresses of the current economy.

"My family has faced the same challenges that many of you have and many across America today," she said.

"We've all built small businesses and worked hard to earn a living. We know the struggles out there," she continued.

In Michigan, Obama's running mate Sen. Joe Biden, D-Del., took the opportunity to pounce on McCain, as well.

"Ladies and gentlemen, ladies and gentlemen, I could walk from here to Lansing, and I wouldn't run into a single person who thought our economy was doing well, unless I ran into John McCain," he said.

"John McCain just doesn't seem to understand what middle-class people are going through today," Biden asserted.

At a later rally in Orlando, McCain tried to amend his earlier statement, which Obama has been mocking for months.

"Those fundamentals are being threatened today because of greed and corruption that some indulged in on Wall Street," he said. McCain has been making similar arguments about the economy for months, earlier this summer telling radio host Laura Ingraham, "I still believe the fundamentals of our economy are strong. We've got terribly big challenges now, whether it be housing or employment or so many of the other -- health care. It's very, very tough times. It's very tough. But we're still the most innovative, the most productive, the greatest exporter, the greatest importer. Every new advancement, literally, in technology that has created this new economy throughout the world, has come from the United States economy. Do we have a lot of things to fix, do we have big challenges? Yes. But I also believe America's best days are ahead of us."

www.abcnews.go.com