Establishment Messiah
Now, let me just close by saying this. I do not think this is going to be easy. It’s not going to come without costs. We are all going to need to sacrifice. We’re all going to need to pull our weight, because now, more than ever, we are all in this together. Now, that’s part of what this crisis has taught us, that, in the end of the day, there’s no real separation between Wall Street and Main Street. There’s only the road we’re traveling on as Americans. And we will rise or fall on that journey as one nation and as one people.
~Barack Obama
Thus the junior senator from Illinois rationalizes his support of the bailout. And if you read the whole speech, you’ll find that it is highly unusual, especially for a Democratic politician. There is none of the class warfare rhetoric, none of the Palinesque denunciations of “greed” and “predatory” lenders, which made the perky GOP vice presidential nominee sound, at times during the VP debate, like a combination of William Jennings Bryan and Father Coughlin. Oh no, that’s not Obama’s style at all, and especially when it comes to the bailout issue, because, you see, his entire mission is to convince the American people that there truly is “no separation between Main Street and Wall Street”—because, after all, he is Lehman Brothers’ bridge between the two. As the OpenSecrets.org web site points out, Lehman Bros. was generous with its contributions to members of Congress, especially Democrats:
In the current Congress, 271 lawmakers have collected nearly $3 million since 1989, with 72 percent going to Democrats. Democratic presidential candidates and senators Hillary Clinton and Barack Obama top the list of all-time recipients for the company, collecting $410,000 and $395,600 respectively. Sen. Charles Schumer, D-N.Y., a member of both the Senate Banking, Housing and Urban Affairs Committee and the Senate Finance Committee, hauled in $181,450, while Sen. Chris Dodd, chair of the Senate banking committee, has collected $165,800.
That’s just the tip of the iceberg. If we look at the list of contributors to Obama’s presidential campaign, we can see that he is, for all intents and purposes, a wholly-owned subsidiary of Lehman Bros., not to mention J.P. Morgan, Citibank, real-estate holding companies, and a veritable Who’s Who of the sub-prime mortgage lenders who are now being bailed out at a cost to the taxpayers—so far—of $700 billion.
Obama’s campaign would have us believe that he’s the anti-corporate candidate, a populist “man of the people” whose race for the White House is being funded by tens and twenties sent in by ordinary folks who can’t wait to see him crack down on Wall Street abuses. What they don’t want you to know is that, out of the two and a half million donors to the Obama campaign, around 180,000 top dogs account for almost 60% of his campaign treasury. Who are these people? Let’s take a closer look….
First off, you have to understand some basics, beginning with the basic irrelevance of those old-time bugaboos known as “political action committees.” These organizations, which represent groups openly seeking favors from the government, are far too transparent and old-fashioned for the Obama campaign, which brags that it doesn’t take PAC money. It more than makes up for this, however, by employing hundreds of “bundlers,” fundraisers who get around limitations on campaign contributions given by individuals by “bundling” donations from a given interest group, including corporate entities.
Of Obama’s 180,000 top dogs, nearly 600 are bundlers representing mostly Wall Street firms, and the sub-prime crowd features prominently. Obama’s bundlers raised over $18 million. You get a better picture of Obama’s supposedly “grassroots” campaign financing when you realize that a mere 552 donors account for almost a full third of his campaign cash. This is masked, albeit not all that effectively, by either failing to list the occupations of these bundlers, or else giving them some innocuous description like “retired” or “homemaker.”
So while it’s true that, among Obama’s campaign contributors there are many Lehman Brothers Executives, such as CEO Richard Fuld ($2,300), President Joseph Gregory ($4,600) and dozens of other top execs, amounting to over $395,000, this is just chickenfeed. The candidate’s bundlers among the firm’s top echelon have raised the big bucks for their messiah. Get a gander at this list of Lehman luminaries:
• Christine Forester - ($500,000-plus) senior executive.
• Mark Gilbert - ($500,000-plus) senior executive.
• John Rhea - ($500,000-plus) managing co-director of Lehman Bros. Global Investment Banking.
• Theodore Janulis – Bundler (over $100,000) & Lehman Brothers, managing director of Global Mortgages.
• Nadja Fidelia – Bundler (over $50,000) managing director.
Obama is going around the country, trying to maintain his populist image, and descrying the greed and corruption of Wall Street whilst crying crocodile tears for the little old ladies being thrown out on the street by sinister banksters. He’s particularly hot under the collar about some of those golden parachutes, whereby the financial wizards behind the sub-prime disaster managed to get away with multi-million-dollar pay-outs. Yet some of the biggest figures in the sub-prime mortgage market have been some of his biggest fans, if monetary contributions are any measure.
Take one Stanley O’Neal, who received more than $161 million when he was fired as Chairman of Merrill Lynch, one of the biggest of the sub-prime lenders. He donated to Obama’s 2003 Senate campaign, and subsequently gave the maximum to his presidential bid. Indeed, the O’Neal family (husband and wife Nancy) are such big Obama fans that they initially tried to give over the maximum—$6.900—and had $2,300 refunded to them.
Another high-roller in the sub-prime sweepstakes is Steve Boland, a managing director of Countrywide, which made a specialty out of selling loans to people who clearly couldn’t afford them: he maxed out to the Obama campaign last June. Andrew Beer, president of Wachovia’s Evergreen Investment Partners, also gave the maximum. The other big players in the sub-prime sandbox all turn out to be Obama-maniacs, including a good number of Citigroup execs.
The Center For Responsive Politics informs us that of the top 20 sources of campaign cash for Obama, 11 were from either investment banks or law firms closely tied to these financial institutions, and the list of big corporate donors – especially the bundlers – is truly awe-inspiring. They include: John W. Roberts, of Ariel Capital Management (over $500,000), Jim Torrey, Founder of the Torrey Hedge Funds over $500,000), Charles Lewis,Vice Chairman of Merrill Lynch, Richard Leweke, Vice Chairman of Washington Mutual Card Services, Seth Waugh, CEO of Deutsche Bank. Over $200,000: Louis Susman, of Citi Investment Banking, J. Michael Schell, managing director at Citigroup, David Heller and Bruce Heyman, both managing directors at Goldman Sachs, Michael Froman, managing director at Citigroup. Francisco Borges, chairman of Landmark Partners a private equity real estate firm, bundled $50,000 for Obama, as did Todd Williams, a managing director at Goldman Sachs and the Real Estate Council.
Obama’s backers in the world of high finance—platoons of top execs from Lehman Brothers, Wachovia, Washington Mutual, Citigroup, Deutsche Bank, Merrill Lynch, Goldman Sachs, Bank of America, JP Morgan, Chase, Morgan Stanley, Countrywide—were all intimately involved in the mortgage fiasco. They profited, bigtime, from the Greenspan Bubble, and now they expect their bought-and-paid-for presidential candidate to bail them out – and he hasn’t disappointed them.
He hemmed and hawed in his Senate speech advocating a “yes’ vote for the bailout, listing all the reasons why the banksters shouldn’t get their 700 billion bucks, and acknowledging the widespread skepticism among the public (as opposed to the elites, who are, quite naturally, for it). But still, he averred, there is no real separation between Main Street and Wall Street.” We’re all in this together, blah, blah, blah…
That is nonsense, to be sure: Banks, particularly investment banks, are no more like ordinary businesses than, say, the US Post Office is like Fed Ex, or the CIA is like a private eye. Main Street sells real goods and services: in an economy that is increasingly socialized at its commanding heights, however, Wall Street peddles Ponzi schemes and political candidates. And their favorite this year is Barack Obama, the designated messiah of the Overclass.
The idea is that by supporting Obama they can avoid social revolution—appeasing both the gods of political correctness and the Fortune 500. Riding into the fray on a white charger, his banner emblazoned with the “Deflation—Never!” slogan that is the battle-cry of finance capital in a state capitalist society, Obama is the Establishment’s trump card, the elite’s last hope of salvaging its power, prestige, and wealth from the coming implosion. It is a remarkable marketing operation—to create a populist and even a revolutionary persona out of someone who is, essentially, a creation of his corporate overlords—but it looks like they’re going to pull it off.
I wouldn’t count on the presence of Obama in the White House to defuse or even delay the powerful upsurge of anti-government, anti-Establishment populism that will be an inevitable reaction to economic turmoil on the scale many economists are now projecting. If they expect Obama to keep the inner cities, and the white suburbs, in line during the coming time of trouble, then that won’t be nearly enough.
This system is finished: the Hamiltonian, state-capitalist corporate state that emerged out of the postwar era, and was based on the Federal Reserve’s “soft” dictatorship over the economy, is over. It is, in short, a dictatorship of the bankers. Empowered to create assets out of thin air by government fiat, the lords of high finance colluded with the lords of Washington to create a system based on fraud, pure and simple. Now that fraud is coming unraveled—but, have no fear! A messiah has come to save them, a multi-culti FDR to sell the bailout to the masses and ensure the banksters’ place as pillars of society. Will he succeed? Can he succeed?
Let’s hope not.
Comments
Excellent article as always, Justin.
Though we should not underestimate the staying power of the political elite, especially since the modern university has simply become a training ground for FDR-ism.
Click to flag this comment as abusive
Interesting analysis. Little by little the conversion of Obama-the-outsider to Obama-the-other-establishment-candidate is being completed.
And to think that his slogan is still “change,” which of course was bizarelly and sickeningly hijacked by neocon puppet McCain. But as typical marketing products, when they say “change” it means no change.
Where is the leadership? Where is the man who has the will to stand up to the traitors, crooks, foreigner agents, and the rest who aim to destroy this country? Not to be found in America apparently.
Between the bankers and the neocon-military-industrial complex, this country is going to be left penny-less and in ruins.
Click to flag this comment as abusive
Great piece, Mr. Raimondo.
Big Bank Barack is how I will now think of him.
Click to flag this comment as abusive
If you read just one more article about McCain, make sure it is this one from Rolling Stone. It shows the “REAL McCain.”
http://www.rollingstone.com/news/coverstory/make_believe_maverick_the_real_john_mccain
Cheers,
Dan
Click to flag this comment as abusive
Oh the silken dark comedy of it all. The Cumpashunut Cunservatev nationalizes the whipsawed banking industry before handing it off to a Democrat victor who is somewhere left of Emma Goldman because the so called Republican is running around the country like an enraged Stinkbug with a Popeye mask while his Vice President mounts a Carol Doda floorshow dressed in an Inquisitors Robe.
This is an election run by the Marque de Sade from the grave and we should rename the blasted husk of a former Republic “New Vincennes”.
Click to flag this comment as abusive
As abject is the implication writing this - the “news” that Obama has supporters in the financial industry and is accustomed to accepting dough from bankers is no news at all. Anyone expecting otherwise has just stumbled out of Bedford Falls by way of the Yellow Brick Road. Our careless Diamond Jims plow money into campaigns to buy candidates’ ears. And candidates, once in office, are careful to sidestep the really important toes to keep those contributions flowing in.
Shocked? Say what?
The best voters can hope to vote in are “respectable” hypocrites who’ll take the right stand on perfectly safe issues (that’s why there are so many “anti-racist” crusaders these days) and maybe even bust off some benefits for the electorate-at-large when they’re engineering a world sufficiently pliant for the rough woo pitched by American commerce.
That this is an inherently corrupt circle-jerk is a tired cliche. But whoever can come up with a cure deserves a chunk of the bailout himself.
Click to flag this comment as abusive
Great essay Justin: This election reminds me of the 1832 German election. The Bankers supported both Hindenberg and Hitler. I am for our Hindenberg Mccain.
Click to flag this comment as abusive
So, what is a guy who thinks this article is spot on supposed to do with the little money he has left?
Click to flag this comment as abusive
Perhaps more significant than Justin’s findings is that George Soros was one of Obama’s first major financial backers.
“whoever can come up with a cure deserves a chunk of the bailout himself”
San Fernando
A major problem is that the President has essentially unfettered power for 4-year periods. Make the President a ceremonial position and move to a Prime Ministerial system.
Click to flag this comment as abusive
Raimondo!!!! The man with the golden pen. I just hope you paid cash for that log cabin of yours.
I’m fixin’ to move to the State of Jefferson myself, assuming I can survive the crash.
Click to flag this comment as abusive
Justin,
Jim Cramer has been telling everyone this week to get out of the stock market. You can always trust Cramer, to get it wrong on everything. If Cramer tells me to sell, I buy!
Click to flag this comment as abusive
In the truly politically incorrect ‘Saturday Night Live’ skit that nailed the bailout boosters, the same video that has now disappeared from Youtube, in the full length version, the last segment features a “Eurotrashy” George Soros. Soros is titled as “Owner, Democratic Party”. SNL like Justin nailed it.
Click to flag this comment as abusive
wow, that’s a great article.
Click to flag this comment as abusive
I think the person who compared McCain to Hindenberg and Obama to Hitler is mis-applying his ingenuity. It should be clear to most people that McCain wants to stage a nuclear world war, and Obama does not.
Click to flag this comment as abusive
Is it irrelevant that the key players, investment Houses, etcetera, the force behind Obama, are also major centers of Zionism?
If the ‘system is finished’, will we see the last of Jewish dominance in America?
Can Obama save Zionism?
Click to flag this comment as abusive
But like Dylan sang, you got to serve somebody. I don’t necessarily have a problem with huge campaign donations from a relatively few donors--that’s how Eugene McCarthy made his beautiful, if futile, run for the presidency.
The financier-donors hope to get something for their money and Joe Sixpacks hope to get something for their 50 bucks too. A subsidy, cheaper health coverage, you name it.
Obama is just part and parcel of the entire Washington bailout scheme--he and all the top pols, supported by a scared populace that also favors a bailout. The House wouldn’t have caved on the second bailout vote if not for public opinion.
It’s worthwhile knowing where a pol is getting his money from, because that weighs in the scale of who to vote for. But I’d be surprised if a dime in a dollar given to pols is disinterestedly given.
Click to flag this comment as abusive
Justin Raimondo has solved a significant enegma for us. Is Obama the willing tool of upper midwestern neo-Stalinist university professors, or the cunning servant of the financial cabal? In the 90s the former and in the 00s the latter. As one moves on and up one discovers that capital is not only virtuous (even Ayn Rand understood that)...but it can actually flow uphill.
Now do we all understand the meaning of “Change!”?
Click to flag this comment as abusive
Good work!
Click to flag this comment as abusive
While it is good to know the names of some of Obama’s top campaign contributors, we should realize that in this era of money makes the man, a Barack Obama would never have gotten where he is today by being a real “populist” or a reformer; even if he were a white guy. The ruling elites would never allow that. Populism, socio-economic policies that benefit “the masses” runs counter to the ruling elites’ agenda. The last real grass roots populist politician with wide scale albeit redneck appeal was Alabama governor George Wallace. If you were alive then or are a student of history, you realize the attempted assassination of Wallace was part and parcle of a program to destroy grass roots change agents nation wide be they as diverse as George Wallace, Martin Luther King Jr or Bobby Kennedy, be it organized labor, the Black Power, or anti-war movements.
By now most sane folks realize the game is thoroughly rigged. Third party candidates who have greater insight into the corruption and criminality of the sytem who are for the people like Cynthia McKinney and Ralph Nader are ignored by the corporate press. The corporate media does its’ part and plays along with the script. They don’t rock the boat, they don’t ask the tough questions or challenge the lies of either candidate/political party.
The coming economic implosion will make 1930 look rosey by comparison. We will look back on the recent “bailouts” (there will be more to come) and see them for what they were, a total scam; a cover up of the premeditated fraud, criminality and machinations of a sociopathic and warmongering Kleptocracy of which Obama and McCain are part.
Click to flag this comment as abusive
“If you read just one more article about McCain, make sure it is this one from Rolling Stone. It shows the “REAL McCain.”
“Big Bank Barack is how I will now think of him.”
Why should we even bother voting?
Click to flag this comment as abusive
Justin, the campaign contribution overpayments and returns are not mistakes. I believe they’re a signalling mechanism. Think about it ... on the one hand it gives the public appearance of honesty and integrity, on the other hand it says privately that “here’s someone who wants to work with us” ... I believe it’s called ‘working within the system’, and no, I am not a cynic. Thanks.
Click to flag this comment as abusive
Excellent article. This is why I supported Ron Paul from the beginning. There is very little difference between McCain and Obama - from corporate stance to military. It’s all a show for the masses.
Click to flag this comment as abusive
Thanks, again, Mr. Raimondo for an enlightening commentary that has given me another substantial reason not to vote for Senator Barack Obama.
Click to flag this comment as abusive
Barack Obama’s opponent, and our only other choice as voters, is John (Wet Start, “Release the Bombs on the Flight Deck") McCain.
End of story.
Click to flag this comment as abusive
This all makes perfect sense when you think about it.
Obama was chosen because he is of mixed races and he has a great story line.
That way it would look really bad for anyone to desparage anything he says
or has ever done, while at the same time he rests firmly in the pockets
of the overlords. Nice one!Kudos!Long live the establishment! ;)
Click to flag this comment as abusive
Talk talk talk, what is anybody going to do about it? Nothing. Bend over.
Click to flag this comment as abusive
We are all in this together whether we want to be in it or not. That’s socialism in a nut shell.
Click to flag this comment as abusive
1Fasad+1shutup=infinity of Hell
Click to flag this comment as abusive
One time, in a bar, I was told that if I didn’t shut up, I would get my Fasad kicked.
Click to flag this comment as abusive
The ultimate source of the financial problem is Central Banking with its arbitrary credit expansion/contraction. Short of severe external events, major modern recessions and depressions are always and everywhere a “credit” phenomenon.
The “Austrian” answer to excess credit is that the markets have to be allowed to liquidate the malinvested enterprises until market clearing prices are reached. Any interference here will only prolong and deepen the inevitable.
Cycles predict that after 2011, ALL major long-term cycles will be pointing down HARD into 2014. That will be the bottom, and will likely be accompanied by violent international chaos.
Click to flag this comment as abusive
Bravissimo! You hit the nail on the head with this article!
Click to flag this comment as abusive
Since you now live in a log cabin i offer you this text to read, by thomas merton: rain and the rhinoceros:
http://rainandtherhinoceros.wordpress.com/2005/02/16/rain-and-the-rhinoceros-by-thomas-merton/
i believe that you will enjoy it.
thanks for your articles.
jean-luc, from quebec
Click to flag this comment as abusive
Great job......one of Raimondo’s best articles
Click to flag this comment as abusive
While I agree with your general thoughts, there is something to the link between wall st. and main st.
Mother’s Cookies just went out of business. I know of a few startups that are trying to get capital equipment loans that can’t. Usually they would get a loan for expensive computer hardware and pay directly for employees… now they are forced to buy the machines outright and not hire folks.
I’m not saying the bailout is required, but something that keeps the cookies baking so that all the dominoes don’t fall over seems to be in order.
Click to flag this comment as abusive
Post a Comment
By submitting this form, you give Taki's Magazine permission to publish this comment. Comments will be published at our discretion, and may be edited for clarity and length. Personal attacks, ethnic slurs, the riding of hobby horses and the beating of dead ones will be deleted as soon as they are detected by our small but alert staff. Repeat abusers of this policy will be barred from leaving comments. All comments reflect only the views of those posting them and not necessarily those of this website, its editors, or authors. For best formatting, please limit your response to one paragraph and don't hit "enter" to force line breaks.
Commenting is not available in this section entry.