A reminder about how lucrative Democratic politics can be

I’m always amazed that the Democrats can, with a straight face, present themselves as the party of the little people and as opposed to big business.  I guess their deal is that, as long as a corrupt capitalist system exists, they should exploit it to the max, all the while working hard to destroy it so that no other poor sinners in society will be corrupted as the Dems were.  Anyway, it’s slightly old news, but I still thought you’d be fascinated by how much Rahm Emanuel profited during his short stint in the private sector, especially considering how little he did and how much unethical conduct he oversaw (all emphasis mine):

Though just 49, Emanuel is a veteran Democratic strategist and fundraiser who served three terms in the U.S. House after helping elect Mayor Richard Daley and former President Bill Clinton. The Freddie Mac money was a small piece of the $16 million he made in a three-year interlude as an investment banker a decade ago.

[snip]

He was named to the Freddie Mac board in February 2000 by Clinton, whom Emanuel had served as White House political director and vocal defender during the Whitewater and Monica Lewinsky scandals.

The board met no more than six times a year. Unlike most fellow directors, Emanuel was not assigned to any of the board’s working committees, according to company proxy statements. Immediately upon joining the board, Emanuel and other new directors qualified for $380,000 in stock and options plus a $20,000 annual fee, records indicate.  [In other words, because he served for only 14 months, Emanuel managed to pull in more than $57,000 per board meeting, assuming 7 meetings during those fourteen months.]

On Emanuel’s watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.  [So Emanuel was a steward for Freddie Mac during one of its most corrupt periods.]

[snip]

During his brief time on the board, the company hatched a plan to enhance its political muscle. That scheme, also reviewed by the board, led to a record $3.8 million fine from the Federal Election Commission for illegally using corporate resources to host fundraisers for politicians. Emanuel was the beneficiary of one of those parties after he left the board and ran in 2002 for a seat in Congress from the North Side of Chicago.

The board was throttled for its acquiescence to the accounting manipulation in a 2003 report by Armando Falcon Jr., head of a federal oversight agency for Freddie Mac. The scandal forced Freddie Mac to restate $5 billion in earnings and pay $585 million in fines and legal settlements. It also foreshadowed even harder times at the firm.

Many of those same risky investment practices tied to the accounting scandal eventually brought the firm to the brink of insolvency and led to its seizure last year by the Bush administration, which pledged to inject up to $100 billion in new capital to keep the firm afloat. The Obama administration has doubled that commitment.

If you were naive, you might think that the drive-by media would be all over this story, which shows a political official profiting mightily, and turning a blind eye to, a hugely corrupt enterprise that helped bring down the American economy.  Those of us with a little more media sophistication, however, are unsurprised to hear nothing but the sound of crickets chirping.

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Comments

  1. says

    When the jihadists blow up school children, naturally their propaganda branches will hail it as a great victory against the foreign infidel invader.

    Why would our own domestic insurgency’s propaganda corps be any different?

  2. says

    The Democrat party sustains their legitimacy by preventing their political enemies from questioning the Democrat party line. Sure, Republicans protest and abjure and reject Democrat policies, but Republicans do not reject Democrat “principles” because 1. Republicans still like to believe that Democrats have principles, that it is just a fundamental “difference of opinion” on what is best for America, socialism or capitalism and 2. Republicans still do not address the truth about the Democrat’s top priority. The Democrat’s top priority is power, not the resolution of crime or poverty or insecurity. The Democrat party needs greed because that is what fuels their institution, that is how they exploit others.

    And until the American people are broken of their dependency and illusionary beliefs about the Democrat party, people and Republicans will still be talking about how what the Democrats advocate won’t work. Of course it will work. It has worked for the power hungry for millenniums uncounted.

  3. says

    Part of the popular success the Dems have with Repubs is the pervasive negative views about conservatism or Republicans. It closes people’s minds off to our views because they view us as being full of malice. This is a good defense for the Dems, who truly are full of malice. Just as it is a great shield for Saddam and Osama to call us the brutal occupiers and aggressors.

    You have to turn the tables. It doesn’t matter what people hear about Democrats or Republicans, if they still believe Democrats “care” and Republicans are corrupt because they seek to exploit and fuel greed for “tax cuts”.

    That is how it is portrayed and just repeating “tax cuts will work” will not do anything to fight the public brainwashing present.

    This is an informational and propaganda and psychological warfare operation, on the battlefield for the minds and hearts of America. And our best warriors in this fight learned their lessons well in Iraq, but we have no access to them. That’s what happens when the traitors win control of the US Presidency.

  4. Mike Devx says

    Ymar #3:
    >> they still believe Democrats “care” and Republicans are corrupt because they seek to exploit and fuel greed for “tax cuts”.

    That is how it is portrayed and just repeating “tax cuts will work” will not do anything to fight the public brainwashing present.

    I’d like to add a followon to Ymar’s insightful comment.

    “Tax cuts” as a philosophy of governing just doesn’t cut it. Of course taxes are too high, but that’s only a symptom of the real problems. And when you cut taxes without solving any of the underlying problems, there comes a point where you are getting higher and higher deficits. That means massive debt. We are getting painful object lessons right now about that. We can’t even figure out how to handle the pain of solving the financials crisis of debt, let alone how to handle what’s coming later due to Obama’s massive spending increases *and* corresponding future debt crisis.

    “Tax cuts… tax cuts… tax cuts” repeated ad nauseum will not work anymore. We need spokesmen in Congress who can articulate a much broader set of principles that people will nod their heads to.

    Thought exercise: A Republican in Congress says “Taxes are too high!”, and ask him or her “Why are taxes too high, and if you’re not going to run a debt, how will you lower them?” I guarantee you: For the vast majority of our Republicans in Congress, the answer will make no sense, it will bore to tears, and it will put you to sleep. Is it any wonder, given the incredible shallowness of their conservatism, that the American people DO NOT listen at all to our Republicans in Congress? They don’t deserve listening to. There are exceptions, but not many.

    If your Republican in Congress cannot articulate a brand of conservatism that excites you, please, vote him or her out. Please. We need new leadership.

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