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  • TUESDAY SEPTEMBER 23 2008 6:00 AM

McCain: Slimy Economic Idiot

John McCain has always been completely full of shit, but over the past decade, many people jumped on the “Straight Talk Express.” He appeared to be a refreshing change from all the other politicians who constantly lied. The big problem with this scenario is that McCain has always been a slimy politician and has never actually changed his ways, only the marketing of his brand. He was forced to do so because in the late 80s, his influence peddling led to American taxpayers bailing out Lincoln Savings and Loan for $2 billion. Sound familiar?

John McCain is exactly what is not needed at this time in our history. As our government attempts to throw $700 billion at more failed private businesses, everyone should understand what McCain did during the Savings and Loan Crisis. To put it simply, Johnny pressured regulators to back off Lincoln Savings, even though it was making risky moves. Eventually, Lincoln was seized, many investors were out their life savings and taxpayers were footing the bill of $2 billion. Lincoln’s owner, Charles Keating was arrested.

Lincoln was the most expensive failure in the national S&L scandal. Taxpayers picked up the bill for the bailout.

In January 1993, a federal jury convicted Keating of 73 counts of wire and bankruptcy fraud in the collapse of American Continental and Lincoln. Keating was sentenced to 12 years and seven months in prison but served just 50 months before the conviction was overturned on a technicality. In 1999, at age 75, he pleaded guilty to four counts of fraud. He was sentenced to time served.



Johnny and Keating went way back. They met in 1981 at a Navy League dinner. During McCain’s first run for Congress, Keating pulled in a sweet $11K for Johnny. In 1983, he hosted a $1000 plate dinner for McCain, and in 1986, he brought in a nice $50K for Johnny’s Senate run. By the time 1987 rolled around, Keating had tossed $112,000 to McCain.

And those were just the political contributions. McCain’s family also was doing business and traveling on the Keating credit card.

Keating was no ordinary constituent to McCain.

On Oct. 8, 1989, The Arizona Republic revealed that McCain's wife and her father had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators.

The paper also reported that the McCain’s, sometimes accompanied by their daughter and baby-sitter, had made at least nine trips at Keating's expense, sometimes aboard the American Continental jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay.

McCain also did not pay Keating for some of the trips until years after they were taken, after he learned that Keating was in trouble over Lincoln. Total cost: $13,433.



And it paid off.

While in the House, McCain, along with a majority of representatives, co-sponsored a resolution to delay new regulations designed to curb risky investments by thrifts such as Lincoln.



McCain and four other Senators, who became known as the Keating Five, even went to meet with San Francisco regulators in an attempt to get them to back off American Continental and Lincoln. In the end, to the great frustration of regulators, the savings was not seized for another two years. During that time, much damage was done.

Of course, these are the pre-maverick years we are talking about. Since then, McCain has changed his ways and become a straight shooter. Or, to put it another way, he re-branded himself as a man who learned from his mistakes and would therefore always approach his duties differently. People bought it, even though it was complete bullshit. The bullshit re-branding was the only way for McCain to survive as a politician. He was the sober alcoholic, the clean drug addict, the asshole who found Jesus. And it worked.

But McCain has never stopped being the slimy politician that he is. Here’s a pick of Johnny meeting with con man Raffaello Follieri, on a yacht in Montenegro two years ago. It was Johnny’s birthday! What better way to spend it than on a boat with a criminal?!



A few months after McCain's yacht party, Follieri strengthened his ties to McCain's orbit by retaining Rick Davis's well-connected Washington lobbying firm, Davis Manafort, and offering Davis both an investment deal and help in securing the Catholic vote for McCain's presidential bid.



Sweet. That’s some serious straight shooting and mavericking. Oh, and Follieri pleaded guilty to conspiracy to commit wire fraud, eight counts of wire fraud and five counts of money laundering last week.

Alright, you’re saying, that’s just McCain and a foreign con man. Could have happened to anyone, right? Yep. Just the same way campaign manager Rick Davis happened to head up a Fannie Mae and Freddie Mac lobbyist group called Homeownership Alliance.

Which the Wall Street Journal reported had a website creed of being dedicated to: "exposing and defeating trends that would harm consumer access to the lowest-cost mortgage option." The group viewed as threats those who are "seeking to spread unfounded fears about risks to the housing system."



You can say what you want about free-market distortions, but people like the system because it gets them into houses cheap," notes [Rick] Davis, who will run an advocacy group called the Homeownership Alliance



So, Johnny’s campaign manager WAS the problem. But he’d love you to believe something else.

For years, Congress failed to act and it is deeply troubling that what we are seeing is an exercise in crisis management rather than sound planning, and at great cost to taxpayers.

We promise the American people that our administration will be different. We have long records of standing up to special interests…



Right. Standing up to special interests is what McCain is all about. That’s why he was one of the Keating Five and has Davis as his campaign manager. That’s why his campaign is overflowing with lobbyists, 83 to be exact. Naturally, some have connections to Fannie and Freddie Mae.

Aquiles Suarez, listed as an economic adviser to the McCain campaign in a July 2007 McCain press release, was formerly the director of government and industry relations for Fannie Mae. The Senate Lobbying Database says Suarez oversaw the lending giant's $47,510,000 lobbying campaign from 2003 to 2006.

According to the Senate Lobbying Database, the lobbying firm of Charlie Black, one of McCain's top aides, made at least $820,000 working for Freddie Mac from 1999 to 2004. The McCain campaign's vice-chair Wayne Berman and its congressional liaison John Green made $1.14 million working on behalf of Fannie Mae for lobbying firm Ogilvy Government Relations. Green made an additional $180,000 from Freddie Mac. Arther B. Culvahouse Jr., the VP vetter who helped John McCain select Sarah Palin, earned $80,000 from Fannie Mae in 2003 and 2004, while working for lobbying and law firm O'Melveny & Myers LLP.



So, as you can see, McCain is getting far away from those same special interests that lead him down that Keating Five road. But that’s not even the worst of McCain’s connections. No, the worst is Phill Gramm.

Phil Gramm used to be a Senator. In the year 2000, he used a “backroom maneuver to slip into law” a bill that kept credit default swaps unregulated.

"Nobody in either chamber had any knowledge of what was going on or what was in it," says a congressional aide familiar with the bill's history.



Guess how that bill worked out? Yes, he’s one of the main architects of the current financial disaster. Oh, and it also allowed Enron to “run rampant.” Remember Enron? Yeah, that would be Gramm.

He’s a walking disaster of a human being.

Gramm's long been a handmaiden to Big Finance. In the 1990s, as chairman of the Senate banking committee, he routinely turned down Securities and Exchange Commission chairman Arthur Levitt's requests for more money to police Wall Street; during this period, the sec's workload shot up 80 percent, but its staff grew only 20 percent. Gramm also opposed an sec rule that would have prohibited accounting firms from getting too close to the companies they audited—at one point, according to Levitt's memoir, he warned the sec chairman that if the commission adopted the rule, its funding would be cut. And in 1999, Gramm pushed through a historic banking deregulation bill that decimated Depression-era firewalls between commercial banks, investment banks, insurance companies, and securities firms—setting off a wave of merger mania.



But that doesn’t stop the Maverick from looking to Gramm for advice.

Sen. John McCain has relied on him for policy advice, especially, according to the campaign, on housing matters.



After Phil Gramm called Americans “whiners” a couple of months ago during a speech on the economy, he was forced to step down from the McCain campaign. But that does not mean McCain has ruled him out as treasury secretary. Check out McCain spokesman Tucker Bounds on Friday.



Good news. Right now there is one man in America who should not be treasury secretary: Phil Gramm. But McCain can’t rule him out. If you are a conservative and you vote for McCain, turn in your conservative card. You are living a lie.

If McCain is elected president we are completely fucked.

FearTheReaper is a writer, actor and stand up comedian. Check back each Tuesday, Thursday and Saturday for more from FearTheReaper and read his blog, Stop All Monsters.

 

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Comments
Tigerwong

Tigerwong

Baltimore, MD
February 2005

SEP 23, 2008 06:56 AM


If McCain is elected president we are completely fucked.



How is this news????

Sorry, had to be said. Anyone with a brain knows that McCain with fuck this country up the ass like a cave troll with a spiked club for a dildo, using dragon's blood for lube.

Of course, not everyone (in the States or on the boards) has a brain, so let's hope Stockula comments so we can raise yet more money for Obama.

Katieesq

Katieesq

USA
June 2008

SEP 23, 2008 08:31 AM


Tigerwong said
Anyone with a brain knows that McCain with fuck this country up the ass like a cave troll with a spiked club for a dildo, using dragon's blood for lube.



Something tells me this was the sole reason why you wanted to post is for this statement. Well, good for you.

I think McCain's involvement in the S&L crisis has been grossly underrepresented in the media. For those who have already sealed their vote for Obama, it doesn't really matter. But for those who haven't, given the current state of the economy, this kind of information could be convincing.

Also, I'll freely admit my ignorance. I didn't know anything about McCain's involvement with the S&L crisis, so I was glad to learn it.

SeanTPoindexter

SeanTPoindexter

Joplin, MO
February 2008

SEP 23, 2008 10:41 AM

Just to head this off at the pass, it is worth noting that John McCain was the only Republican member of the Keating-5. Doubtless some right-wing apologist would have pointed that out as some kind of defense of John McCain. That is how most right-winger "brains" work: if a liberal points out something that a Republican did wrong, you simply have to point out that a Democrat (or in this case, four other Democrats) did the same thing and somehow that makes it ok. I don't understand it, but then again I'm not a right-winger. I guess they assume that liberals are as in-love with the Democratic party as they are with the Republicans, when in fact most liberals (myself included) have only slightly less contempt for the Democrats as we do for Republicans...sometimes more.

More on the Keating-5 here.

livertarian

livertarian

Fairfax, VA
February 2008

SEP 23, 2008 10:47 AM

We are fucked with either of the major parties, and we are fucked if we keep up big government. Obama may seem honest compared to McCain, but he has absolutely no intention of confronting the central banks. The massive compromises Obama has to make to get elected completely nullify any potential for effectiveness.

If you desire a clear and sound economic policy from whatever administration, do yourself a favor and develop an opinion on fractional reserve lending. The politicians will not speak of it unless spoken to, if they understand it at all. We let banks create enormous wealth out of thin air, mostly for their friends and families, while giving sops (mortgages for small properties) to us commoners to keep us middle class and happy. It cannot last. We cannot produce enough things of value to keep up with exponential debt creation.

Coyotemike

Coyotemike

USA
May 2006

SEP 23, 2008 11:07 AM

I find it humorous, as the right-wing-nuts are saying that the blame for the current situation is on Clinton and Carter. They aren't coming up with any sort of reasonable reason to blame these two administrations, but since they were the last two (D) presidents, it obviously must be their fault.

smithers_jones

smithers_jones

I'm lost
November 2003

SEP 23, 2008 11:19 AM

MrProzac said:
Just to head this off at the pass, it is worth noting that John McCain was the only Republican member of the Keating-5.


He's also the only member of the Keating-5 still in office and the only one running for President.

livertarian

livertarian

Fairfax, VA
February 2008

SEP 23, 2008 11:20 AM

coyotemike said:
I find it humorous, as the right-wing-nuts are saying that the blame for the current situation is on Clinton and Carter. They aren't coming up with any sort of reasonable reason to blame these two administrations, but since they were the last two (D) presidents, it obviously must be their fault.



The blame game is endless, and it's a distraction. Many media loudmouths have said that our current economic crisis is proof that "free markets don't work." Bullshit. The market is not "free" if the people have no control over the value of their currency. The steady rise of corporatism is not a result of a free market, because where do corporations get their money from? Banks that can create money out of thin air.

Coyotemike

Coyotemike

USA
May 2006

SEP 23, 2008 11:27 AM

Dammit, who switched the Libertarian light on?

ericwine

ericwine

Charlotte Hall, MD
January 2007

SEP 23, 2008 11:36 AM


FearTheReaper said:
If you are a conservative and you vote for McCain, turn in your conservative card.



Given the current makeup of Congress, I suspect that most conservatives and moderates who vote for McCain will do so based on a single four-letter word: VETO.
In some cases, McCain is likely to disappoint them on that score too.

FearTheReaper

FearTheReaper

NEWSWIRE

I'm lost

SEP 23, 2008 11:39 AM

livertarian said:
We are fucked with either of the major parties, and we are fucked if we keep up big government. Obama may seem honest compared to McCain, but he has absolutely no intention of confronting the central banks. The massive compromises Obama has to make to get elected completely nullify any potential for effectiveness.

If you desire a clear and sound economic policy from whatever administration, do yourself a favor and develop an opinion on fractional reserve lending. The politicians will not speak of it unless spoken to, if they understand it at all. We let banks create enormous wealth out of thin air, mostly for their friends and families, while giving sops (mortgages for small properties) to us commoners to keep us middle class and happy. It cannot last. We cannot produce enough things of value to keep up with exponential debt creation.



Oh, good. Another thread turned into a pointless discussion about the Libertarian utopia. Super.

FearTheReaper

FearTheReaper

NEWSWIRE

I'm lost

SEP 23, 2008 11:45 AM

Katieesq

Katieesq

USA
June 2008

SEP 23, 2008 12:15 PM

Scavenger hunt: find me a video that addresses this from a major news media outlet. Why aren't they picking up such an obvious story? What's the catch?

FearTheReaper

FearTheReaper

NEWSWIRE

I'm lost

SEP 23, 2008 12:21 PM

The media has always had a difficult time stepping back and looking at the larger picture.

Quirky

Quirky

Birmingham, AL
October 2005

SEP 23, 2008 12:21 PM

Katieesq said:
Scavenger hunt: find me a video that addresses this from a major news media outlet. Why aren't they picking up such an obvious story? What's the catch?



They tend to catch things a little later, Katie. Take the Rape Kits meat. They took just a little longer than we did, due to doubts of its credibility as it first appeared on a blog.

Katieesq

Katieesq

USA
June 2008

SEP 23, 2008 01:02 PM

^^^ Right. But the rape kits issue was clearly incendiary, and no major news organization will print something like that without fully vetting it. That would be unprofessional, and could result in gaffes similar to reports regarding Covenant House and book banning. But the Keating 5 contention has been sitting around for over 20 years. The media seems willing to dredge up McCain's decade-old unseemly jokes, so why not this?

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