Lost in the current controversy over MyDD founder Jerome Armstrong's apparent belief in astrology, are other reports which could cause some to question if it's a good idea to have an individual who ran afoul of the SEC minding on line contributions for political candidates.
As The Hill reported on June 15th, Daily Kos has transferred administration of Blog PAC over to MyDD. MyDD also indicated its decision to no longer distribute funds from the PAC to political candidates, but to use them, in some manner, to support bloggers themselves.
BlogPAC, a liberal political action committee started in 2004 by the Daily Kos’s Markos Moulitsas Zúniga and several others bloggers, is under new management.
Chris Bowers and Matt Stoller, who write for the liberal blog MyDD.com, took control of BlogPAC earlier this month. It will no longer operate as a traditional PAC, raising money to support candidates and participate in elections, Bowers said in a statement on the website.
“Under our management, the mission of BlogPac will be primarily to defend the netroots and improve the quality of online activism,” Bowers wrote. “What we do not have is a formal entity to defend and enhance the political activity of the progressive blogosphere and progressive netroots.”
Bowers told The Hill that BlogPAC does not need to steer money to candidates because ActBlue, a website that lets bloggers and readers contribute directly to candidates, has helped raise more than $5 million for Democrats since 2004.
Given some previous statements and the current controversy surrounding Amrstrong, it's fair to look at certain facts. While Stoller and Bowers are officially administering the PAC, one has to wonder if they don't actually work for Armstrong. As pointed out here, someone is being paid by someone at MyDD.
Here Chris Bowers at MyDD acknowledges some paid arrangement involving the SEIU.
In the interest of full disclosure, I should note that while I am not actually paid by SEIU, the only client I am currently paid to consult for is SEIU.
And here, I pointed out that the SEIU has been paying Political Technologies, LLC, presumably an Amrstrong company. Such an arrangement, between Armstrong and Bowers, assuming it exists, in a sense, might make the increasingly controversial Armstrong Bower's boss while he's administering Blog PAC.
Oh - and here's a link to where SEIU paid Political Technologists LLC almost $162,000 in 2005. Enter - political technologies LLC And either there's a redundancy, or they were paying two equal payouts each month.
There is also ample evidence on the Internet that, whether illegal, or not, Armstrong's judgment, both political and financial, is certainly subject to question. In this post, poster MyDDdotcom indicates he also posted on stocks as 426figures.
Yep, used to post on RB as 426figures, good to be here, thanks... SYCD looks like a good buy at .11, if CMIX or TGHI works out to form I'll load up again there... that Pokemon run thing sure was a fun one:)
Following the trail of 426figures leads one to this post, which claims to display a variety of screen names for MyDD's Jerome Armstrong.
could get Jerome B. Armstrong (426figures, four2sixfigures, 426, im426, jeromejackson, mydddotcom etc...to start a message board. He does specialize in Shells and RM's over on Ihub,SI or RB. We all know how involved he was on the early boards For SCII, I think he even started the RB thread. Not sure what his new alias is now he does change them alot
Evidence of Armstrong's bad judgment might be seen here on this board, upon which a poster, 426figures, consistently touts another stock, that of InvestAmerica, Inc (INVT).
As for my realistic opinion. I like to think big and trade wise. I'm already up 300%, so I've sold a third of my position and have 20k of free shares that I'll ride this with, as far as it will take me. There's no way this will ever be in the .teens or .twenties again, ... Grond(sic) floor, the company is excited, worlds of possibilities in this emerging, very profitible field.
Skies the limit! Just a matter of finding new, higher, floors now!
The issue of judgment comes into play if you glance at this from Fool.com, where that precise stock is featured in an article Following the Stupid Money.
Well, it goes to figure that if there is some smart money out there in the investing universe, there must also be some stupid money.
An example: InvestAmerica (OTCBB: INVT). Here is the company's profile:
... Let me translate: We're not doing anything. We're looking for something to do, and we're interested in merging with a company that would like to become public the easy way.
Current market cap? $148 million dollars. For no revenues, and $500,000 in the bank. Look, I don't want to cast aspersions on the company, but starting up a business is hard, even without the added hassle of dealing with public shareholders. More than 80% of all new companies fail within the first two years. The people who have invested in this company have given themselves, mathematically, a 20% chance of even getting their money back. On what? A company with no business plan whatsoever. We often talk about the illogic of playing the lottery as an investment (average return -50%), but these people would be better off if they DID put their money into lottery tickets.
Without alleging any illegality, or malfeasance, which I am not - given Armstrong's display of bad judgment in both political candidates and stocks, on top of his trouble with the SEC, it seems fair to at least broach the question: will the decision to turn Blog PAC over to MyDD end up helping blogs, or being a classic example of how a fool and his money can be soon parted?
Of course, assuming one thinks most liberals are fools to begin with, I suppose you could make the argument that its stupid money right from the start.
You can see Blog PAC's FEC filings here. They've already had more than one request for additional information as regards itemized expenditures and affiliated organizations or relationships. The pdf's aren't linkable, but are listed as Requests for Additional Information at link above.
Update: Just like me to be off researching a story while everyone's having so much fun!
Also, Instapundit has a round up of all the related coverage. Or should I say snark?
Update: If you look at the BlogPAC disclosure records, you'll see that from Jan - Mar of 2005 - their only disbursements were to another blogger / consultant - Bob Bingham - from the Swing State Blog. According to slate, he was a one time employee of Armstrong, as well as a leading force behind BlogPAC. Interesting. They've been collecting money on line and paying it to ... themselves for consulting?? I don't know. But those filings could prove interesting, either now, or in the future.