GCS1103
23rd November 2011, 03:51
If you've ever wondered why someone would subject themselves to intense scrutiny and unbelieveable pressure to run for Congress or the Senate - you will get your answer in the new book "Throw Them All Out." It's not the salary, pension and health benefits, although they're better than average. No, it's the flat out insider trading that has made all our Washington leaders richer than they ever dreamed possible.
The author, Peter Schweizer, states:
"Politicians have made politics a business. They are increasingly entrepreneurs who use their power, access and privileged information to generate wealth. And at the same time well-connected financiers and corporate leaders have made a business of politics. They meet together in the nation's capital to form a political caste.
In short, the Permanent Political Class has clearly figured out how to extract wealth from the rest of us based solely on their position and proximity to power. If you have a seat at the table, you are in for a feast. If you don't have a seat at the table, you are probably on the menu."
The author details how earmarks are used by our Senators and Congressmen to increase their personal wealth by incredible numbers. A few examples given:
Nancy Pelosi has pushed for earmarks to construct and ultimately extend San Francisco's Third Street Light Rail Project. In 2004 she boasted to her constituents that she had secured more than $120 Million in federal money for the project. Third Street is one of the most expensive light rail projects ever, costing $660 Million for just a six-mile route. These earmarks had the effect of directly benefiting the commercial property holdings the Pelosis had near those lands where federal money was doled out for these projects.
Nancy Pelosi's purchase of VISA stock while she was overseeing legislation that would directly impact the stock's value is chronicled.
Also discussed are former Speaker Dennis Hastert's land dealings when earmarks were made for highway money in his State. He purchased land by the proposed site at low rates from the owner, who was unaware of the pending legislation to put a highway by his land. Hastert made a small fortune on his insider knowledge.
Alabama Congressman Spencer Bachus's stock trades, with access to information that the public did not have during the TARP debate are also mentioned.
On and on it goes, both Republicans and Democrats operating with insider knowledge and making a fortune on this information. Remember when Martha Stewart went to jail for her insider knowledge? None of these activities are illegal under the current law, but they are in other industries. This is why politicians who come to Washington without much money end up becoming millionaires many times over by peddling access and information. Not only are these activities legal but The Office of Congressional Ethics has determined that they are not even unethical.
"Sweetheart" IPO's are not auctioned to the public, in which people can openly compete for shares in a bidding contest- but members of Congress are allowed to participate.
Here's a novel concept- why not have our elected officials subject to the same laws that we are? That would solve a multitude of our problems. As long as they are able to engage in this "crony capitalism" with impunity, we are all f***ed.
The author, Peter Schweizer, states:
"Politicians have made politics a business. They are increasingly entrepreneurs who use their power, access and privileged information to generate wealth. And at the same time well-connected financiers and corporate leaders have made a business of politics. They meet together in the nation's capital to form a political caste.
In short, the Permanent Political Class has clearly figured out how to extract wealth from the rest of us based solely on their position and proximity to power. If you have a seat at the table, you are in for a feast. If you don't have a seat at the table, you are probably on the menu."
The author details how earmarks are used by our Senators and Congressmen to increase their personal wealth by incredible numbers. A few examples given:
Nancy Pelosi has pushed for earmarks to construct and ultimately extend San Francisco's Third Street Light Rail Project. In 2004 she boasted to her constituents that she had secured more than $120 Million in federal money for the project. Third Street is one of the most expensive light rail projects ever, costing $660 Million for just a six-mile route. These earmarks had the effect of directly benefiting the commercial property holdings the Pelosis had near those lands where federal money was doled out for these projects.
Nancy Pelosi's purchase of VISA stock while she was overseeing legislation that would directly impact the stock's value is chronicled.
Also discussed are former Speaker Dennis Hastert's land dealings when earmarks were made for highway money in his State. He purchased land by the proposed site at low rates from the owner, who was unaware of the pending legislation to put a highway by his land. Hastert made a small fortune on his insider knowledge.
Alabama Congressman Spencer Bachus's stock trades, with access to information that the public did not have during the TARP debate are also mentioned.
On and on it goes, both Republicans and Democrats operating with insider knowledge and making a fortune on this information. Remember when Martha Stewart went to jail for her insider knowledge? None of these activities are illegal under the current law, but they are in other industries. This is why politicians who come to Washington without much money end up becoming millionaires many times over by peddling access and information. Not only are these activities legal but The Office of Congressional Ethics has determined that they are not even unethical.
"Sweetheart" IPO's are not auctioned to the public, in which people can openly compete for shares in a bidding contest- but members of Congress are allowed to participate.
Here's a novel concept- why not have our elected officials subject to the same laws that we are? That would solve a multitude of our problems. As long as they are able to engage in this "crony capitalism" with impunity, we are all f***ed.