How privileged Democrats pay for their houses
How privileged Democrats pay for their houses
by Michelle Malkin
Creators Syndicate
Copyright 2010
Like millions of Americans, Delaware Republican Senate nominee Christine O’Donnell has had trouble covering her mortgage and other bills over the years. Her opponents consider this a scandal of disqualifying proportions. But there’s a bigger disgrace: It’s all the sanctimonious Democrats who have exploited their entrenched political incumbency to pay for multiple manses and vacation homes — while posing as vox populi.
Former senior senator from Delaware and current Vice President Joe Biden has a custom-built house in Delaware’s ritziest Chateau Country neighborhood. It is now worth at least $2.5 million and is the Bidens’ most valuable asset. Biden tapped campaign funds to pay for his compound’s lawn needs. He secured the new estate with the help of a corporate executive who worked for Biden’s top campaign donor, credit card giant MBNA.
In 1996, Biden sold his previous mansion to MBNA Vice Chairman John Cochran. The asking price was $1.2 million. Cochran forked over the full sum. Biden then paid $350,000 in cash to real estate developer Keith Stoltz for a 4.2-acre lakefront lot. Stoltz had paid that same amount five years earlier for the undeveloped property.
Stoltz told the Wilmington News Journal that “the residential real estate market was soft” at the time he sold the land to Biden. But “soft” for whom? Stoltz was a well-off businessman who didn’t appear to be in such dire financial straits that he needed to unload the property quickly in a weak market.
Reporter Byron York looked at comparable properties in Biden’s neighborhood and found three cases where homes in the area went “for a good deal less than their appraised value. In comparison, it appears Cochran simply paid Biden’s full asking price.”
Biden’s office denied any sweetheart deals took place, but York noted that it appeared MBNA indirectly helped Cochran buy the Biden house through six-figure executive compensation funds listed as moving expenses and losses suffered on the sale of his previous home.
To be clear, no laws were broken. These arrangements were simply a continuation of Biden’s decades-long, Beltway business-as-usual relationships with a deep-pocketed corporate benefactor — which, by the way, later hired his son. Nice nepotism, if you can get it.
North Dakota Democrat Sen. Kent Conrad and Connecticut Democrat Sen. Chris Dodd made cozy arrangements with subprime sleaze lender Countrywide. Portfolio.com reported that Conrad “borrowed $1.07 million in 2004 to refinance his vacation home with a balcony and wraparound porch in Bethany Beach, Del., a block from the ocean.”
Senate Banking Chair Dodd received two discounted loans in 2003 through Countrywide’s VIP program. He borrowed $506,000 to refinance his elite townhouse in Washington, D.C., and $275,042 to refinance a home in East Haddam, Conn. Countrywide helpfully waived fractions of points on the loans. The lower interest rates could have saved Dodd a combined $75,000 during the life of the 30-year loans.
Dodd had known about the preferential treatment on his loans since 2003, yet continued to deny that he was treated like a VIP, refused to acknowledge wrongdoing and encouraged government-sponsored mortgage enterprises Fannie Mae and Freddie Mac to invest in Countrywide’s risky loans.
Not content with two shady home deals, Dodd got in on a real estate scheme for an Irish cottage and nearly 10 acres of land with William Kessinger, a businessman tied to his close friend, insider trader Edward R. Downe Jr.
Downe had pleaded guilty to tax and securities law violations and was banned for life from the business. In 2001, Dodd helped Downe obtain one of the treasured presidential pardons on Bill Clinton’s last day in office. A year after that, as Irish real estate prices went through the roof, Dodd purchased Kessinger’s share of the estate at a discount. He failed to include the obvious quid-pro-quo gift on Senate disclosure forms: Help a crooked friend, reap a cut-rate real estate deal.
Prominent members of Team Obama benefited from similar special home deals. Politico.com noted that the Clintons secured a $1.35 million loan from Democrat pal and fundraiser Terry McAuliffe for their New York estate; Obama special envoy Richard Holbrooke snagged a sweetheart loan to refinance his Telluride, Colo., ski vacation home from the Countrywide VIP program; and Obama’s close confidante and erstwhile vice presidential search committee panelist Jim Johnson accepted more than $7 million in below-market-rate loans from Countrywide.
Then there’s President Barack Obama’s own $1.7 million Chicago manse — which was financed with a discounted mortgage from Northern Trust and infamously included a shady land swap with convicted felon donor/developer Tony Rezko. A report released by the Federal Election Commission in February 2009 underscored that the Obamas received reduced loan rates (saving $300 a month, or $108,000 over the life of a 30-year loan) because of their high-profile positions.
Northern Trust offered the super jumbo loan to the Obamas in anticipation of entering “long-term financial relationships” with the successful couple. The FEC refused to call the Obamas’ mortgage deal an illegal corporate contribution, but it was an obvious act of favor-trading. Northern Trust employees had contributed $71,000 to Obama since 1990.
GOP candidates like Christine O’Donnell, who have weathered personal financial troubles, have a lot more in common with the 14 million Americans underwater on their mortgages than these privileged Beltway boys. Perhaps fat-cat Democrats in crony-funded houses should put down their stones.
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Privileged Democrats don’t pay for their houses. Other people do it for them.
The elites of all parties have the same strips … the goal.
It won’t matter when it is all burnt in the fire to come.
So much power in Washington DC, naturally there will be corruption.
The tents,bunkers,prefab shacks,and shipping containers our soldiers in the war zones live in kind of pale compared to these places.
Sounds like my wife commenting on my cooking!
MM said it best. It’s all about the boodle.
That’s probably the first time that MM has ever admitted that Democrats have stones!!
The current salary (2010) for rank-and-file members of the House and Senate is $174,000 per year.
While that’s nothing to sneeze at, I wouldn’t think it’s enough for them to afford $3 million estates. If they weren’t rich already, there’s no way these ‘public servants’ should get rich in office.
Before elections, politicians should have to issue a Prospectus detailing everything about their financial status since before taking office.
Not if you listen to Ted Rall. He thinks our military has it easy. He’s also an idiot. Liberal, of course.
Dems, and unfortunately, some Repubs, and local government officials (like those in Bell, California) have no character, no principles, and no shame. I lived in WWII-era dormitories back in my AF days.
Who was the dem Congress woman from CA who had houses in foreclosure? I can’t recall. Anyone?
Richardson?
Not holding my breath for that to happen.
The wonderful thing about having no ethics and no morals is that you can beat others about the head for their supposed lapses, but they can’t make the same thing stick to you.
The wonderful thing about having a base full of willfully ignorant Kool-Aid drinkers is that they can be counted on not to notice things like what Michelle is pointing out here, even if the media saw fit to report on it.
It was a nice try, though.
I thought Obama paid only $1.35M for his residence, after the seller inexplicably dropped the price $300K.
Also, I’m disappointed that the article didn’t point out that WaPo reported a few years ago that Obama purchased a sliver of land from Rezko’s wife for $104,500 when, in fact, Obama had an appraisal stating that the value of the land was $40,500. Why did Obama overpay $64K? And why didn’t Obama report that as a taxable gift to Rezko’s wife on a federal gift tax return?
Dexter – I’ve commented many times our elected critters at every level should disclose, on a yearly basis, either published in their contituents newspapers or websites where their money comes from. Most go into office penniless and retire wealthy. How do those miracles keep happening to the chosen few?
It’s not by their vast knowledge of financing as we’re shown on a daily basis conducting our business.
If you’ve had difficulty paying a mortgage at any point in your life, Democrats say you’re unfit for the legislature.
If you’ve failed to pay taxes in your life, Democrats put you in charge of the Treasury.
Whoa, there! Did you say “Biden tapped campaign funds to pay for his compound’s lawn needs.” Uh, isn’t that the charge being leveled against Christine O’Donnell? Was he fined for that? Prosecuted? Disqualified for office? I mean he is “second in line” (sic) for the presidency….
Richardson, that’s it. Thanks…
I wonder if he hires the same guys for his lawn work as Colon Bowell does?
Look at the board members of the Chicago Council on Global Affairs…
Others have noted how Michelle Obama’s salary increased dramatically when Barack was elected Senator.
Both Michelle and her boss at the time were/are board members of the Chicago Council on Global Affairs.
Michelle’s former job description (before becoming first lady):
… and her boss…
It has never been a surprise to me that the Dems don’t understand budgets and believe in income redistribution. They constantly use the money of others to buy things that they can’t afford. Then they turn around and feel that the rest of us should pay for homes, cars, whatever for the Dems’ base because they won’t work hard enough to afford them themselves. Maybe if the libs of both parties hadn’t pillaged our pockets for decades, the less fortunate might have acquired enough skills and a work ethic to be able to afford a better lifestyle. Handouts never create wealth. Taxes don’t create wealth. Corrupt politician don’t create wealth.
And this is why someone spends $13 million dollars campaigning to become a senator making $150,000 per year? Whooda thunk it.
Don’t forget that Randel bought a house in the DR and that didn’t disqualify him from having 4 rent stabilized apartments. How many of his voting public were deprived of an affordable apartment because Rangel needed 4? He should have had 1 non-rent stabilized apartment.
Please explain to me how being a SENATOR for your entire adult life makes you able to afford $2.5 million dollar mansions??
Biden hasn’t worked a day in his life.
I find it truly amazing that politicians seem to amass great fortunes around the time they spend millions of dollars campaigning for a job that pays about $140,000 a year.
And I find it equally amazing how they amass even greater fortunes shortly after leaving office. Clinton and Gore have raked in hundreds of millions in the 10 years since they left office.
Does Barack Obama thing, at this certain point, they have earned enough? I’d really like to know…
since coming up from those coalmines…
Politicians are also part of the entitlement class. They mostly believe that they are doing the public a great favor by “slumming” in $176,000 a year jobs when they could make great riches in the private sector. And because of their being so self-sacrificing, they believe they are entitled to the preferential treatment they get from banking institutions and other businesses in exchange for votes favorable to those interests.
If that’s the way they want to do it, the only (relatively weak) recourse I have is in the voting booth. Otherwise I would just ask that they let me live in peace with minimal interference from them, and with their hands out of my flipping pockets.
Now you know why he thinks he’s the smartest guy in the room.
What is even worse is that so many of them get huge speaking fees to deliver lame speeches. I have no interest in hearing any of them say anything either in office or after they are out of office.
This is what happens when we let Congress have influence over banks, real estate industry, housing, etc. Get rid of Fannie and Freddi, and the Federal Reserve, which is neither Federal, nor a reserve.
But how good a brewer are you?
Photos and approx. locations….. bad move. When there are not enough people working any longer to shake down in oreder to provide the rabble (democrat voters) with their handouts, the mob will know where to go.
At the house the Obamas currently live in, that we pay for, they hosted a special event to pander to hispanic voters. It’s on TV right now…
Fiesta Latina
President and Mrs. Obama host a celebration of Hispanic music from the South Lawn of the White House. Slated to appear: Marc Anthony, Aventura, Pete Escovedo, Gloria Estefan, José Feliciano, Los Lobos, George Lopez, Jimmy Smits, Thalía.
duration: 60 min
details: [CC] [STEREO]
Christopher Dodd looks like a werewolf in the process of changing over in the above picture. Creepy.
And we get “treated” to hearing Amor a la Mexicana sung on the White House grounds. Terrific.
Another day, another middle finger salute from the worst.president.ever. He parties. We suffer. That will be reversing very very soon.
On September 24th, 2010 at 10:41 pm, happyscrapper said:
Indeed.
E.B. Farnum: Why, even in Richardson, my chef, my eyes see a beloved household pet somehow walking upright – see in Richardson a half-witted child, nonetheless adored.
Just how badly has Obama lost Independents?
In the last 20 months, he’s gone from +12 to -35 among Independents!
(That represents a current -35 rating among Independents, as compared to his +12 rating among Independents on the day before his inauguration.)
Source: Demographic Notes – Barack Obama Approval Index
These people are the “rich” that should be taxed; not the small business owners that have to pay. I guess democrats are exempt from being the so-called “hated” rich.
I have observed this is one of the most important things die hard lifelong Democrats fail to understand: The real rich do not pay taxes. It’s the small business owner (the most important creator of jobs) who pays the taxes Democrats claim (lie) they are targeting at the rich.
The rich have tax attorneys on retainer to tell them the tax consequences and any loopholes they can use before the rich person makes any move. Compared to the amounts of money they are moving, the cost of the tax attorneys is meaningless.
That’s not a cost effective strategy for the small business job creator.
All of these Democrat politicians are trash. They all know what I just wrote is true. They lie to their constituents, as they * them in the *.
If any Democrat politician really wanted to tax the rich, he would be attacking the loopholes for the truly rich, not the tax rates on small business.
John Kerry is right about the stupidity of the voter. He should have laughed with glee as he said it.
A little off subject but, Is anyone happy with J Boehner’s performance and comments on Fox this morning? I am NOT!
I missed it, but try not to be too disappointed. He’s taking major flak from the enemy, so we have to allow him plenty of room to weave and dodge right before an election.
A sweeping conservative victory in the House Nov 2 should give him a backbone.
I’m not worried about his back bone but, if he needs a majority to grow a pair he is not fit for leadership of the majority in the House. If, the so-called conservative Republicans turn to squish after the election, there will be a third party.
The stones Democrats have are not their own. They get them through the redistribution of stones. But, as Margaret Thatcher once pointed out, eventually you run out of other people’s stones.
E.B. Farnum: Some ancient Italian maxim fits our situation, whose particulars escape me.
Francis Wolcott: Is the gist that I’m sh!t out of luck?
E.B. Farnum: Did they speak that way then?
Excellent points, Roland. And if you ever get tired of writing it, this makes for a nice handy link. An excerpt:
“Last year [2003], Mr. Kerry and his wife paid only 13.4 percent of their declared $5.5 million income in federal taxes. President and Mrs. Bush, whose income was only 15 percent of the Kerrys’, paid a tax rate more than twice as high, 27.7 percent. Despite all of the senator’s bombast about the rich paying more, under his plan he and Mrs. Kerry would still pay a lower average rate than most middle-income Americans.”