Man oh man does money corrupt people or what. Now John Arnold, hedge fund billionaire, former Enron trader is crawling into bed with the Obamas. Ugh... http://www.politico.com/politico44/...ama_6cccc297-f2cd-4cc6-a869-28e72d10b851.html Houston fundraiser drama First lady event upsets local Dems By JULIE MASON | 10/27/11 2:45 PM Updated: 10/27/11 4:30 PM An upcoming Houston fundraiser featuring first lady Michelle Obama at the home of a former Enron executive who is part of a movement to convert public pensions to 401(k)-style plans is angering some local Democrats. John Arnold, a Houston billionaire and former Enron trader, is hosting the Michelle Obama event with his wife, Laura Arnold, at their Houston home on Nov. 1. Arnold is part of an organization pushing to convert public pensions â including teachers, police, firefighters and others â to 401(k)-style plans. The effort launched in California but has plans to go nationwide, according to a story by Bloomberg. The story notes that Arnold is a libertarian and his wife a Democrat. A receptionist at Arnold's Houston investment office told POLITICO that Arnold was not available to comment. Dana Guefen, co-chair and event contact for the Nov. 1 Houston fundraiser featuring the first lady, declined to comment to POLITICO but said someone would get back in touch. Gayle Fallon, president of the Houston Federation of Teachers, called the 401(k) proposal "very frightening for teachers." She noted the nose dive many retirement plans took in the stock market in 2008, saying, "What if I was retired and that happened?" "My people supported Obama big-time in 2008," Fallon said. "This is not helping." President Obama has made support for teachers a centerpiece of his push for the American Jobs Act. He also has the support of the National Education Association. The pension battle also is happening in Texas, although it's not clear that Arnold is involved or helping to finance it. The Texans for Public Pension Reform want a constitutional amendment eliminating public pensions in the state in favor of a new system â like a 401(k), according to the Austin American-Statesman. In any case, Arnold's support for the pension campaign in California has some Houston Democrats questioning why the Obama campaign would risk such an alliance. The Obama campaign told POLITICO that Arnold is a supporter and said the Nov. 1 fundraiser is still on the schedule. Tickets for the event start at $10,000, and co-host level contributions are $35,800. Art Pronin, a Houston Democratic activist, said, "This just got my dander up." "Does Obama support converting teacher pensions to 401(k)'s? I doubt it," said Pronin, president of his neighborhood Democratic club. "This is creating a lot of consternation in Democratic circles, and it's going to make it that much harder to get the vote out next year politically." Local activists, including the Houston chapter of Occupy Wall Street, are considering some kind of protest of the first lady's event. Meanwhile, the local teachers' union is working to educate members about the pension campaign. "We need street action that will make Wisconsin look like a picnic," Fallon said.