Thursday, March 26, 2009

The Fox Is In The Hen House

CNBC's Larry Kudlow recently wrote that "Obama is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds."

Certainly looks like that way with his punitive measures and taxes on these kinds of things.

One thing that Obama said on the Tonight Show the other night struck me though.

Obama said:

"We need young people instead of the, you know, a smart kid coming out of school, instead of wanting to be an investment banker, we need them to decide they want to be an engineer, want to be a scientist, they want to be a doctor or a teacher, and if we're rewarding those kinds of things that actually contribute to making things and -- and making people's lives better, that's going to put our economy on solid footing, we won't have this bubble and bust economy that we've gotten so caught up in for the last several years."

Maybe it's in vogue to be all against investment bankers, but guess who made 16 million dollars in just 3 years as an investment banker? That would be Pres. Obama's right hand man, The White House Chief of Staff......Rahm Emanual. A small part of that fortune was made in 2000 when Rahm was named to the board of Freddie Mac by Clinton. According to the Chicago Tribune:

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.

It was easy money. The board met no more than 6 times a year. Do you think we can find some retro outrage left over from this AIG thing? Because it really isn't that different.

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.

The accounting scandal wasn't the only one that brewed during Emanuel's tenure.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.

We still don't know what's on those phone tapes of Gov. Blago's with Rahm. If you remember, Rahm suddenly found that he had to travel out of the country during the whole Blago fiasco. It was easy to avoid questions that way.

Obama doesn't seem to mind that his own Chief of Staff was once one of those "evil" investment bankers AND was a part of the Freddie Mac greed that started this whole stack of cards to fall.

Rahm has slimeball written all over him. I hope the Chicago Tribune has the guts and the fortitude to keep looking into this scumbag. I can't believe he is our President's right hand man.

The Fox is in the henhouse. It's going to get bloody.