Corn has broken stories on presidents, politicians, and other Washington players. He's written for numerous publications and is a talk show regular. His best-selling books include Hubris: The Inside Story of Spin, Scandal, and the Selling of the Iraq War.
John McCain's campaign put out yet another slashing anti-Obama ad on Monday morning that accused Barack Obama of being part of "the corrupt Chicago machine." The evidence? William Daley, an Obama policy adviser, is a lobbyist and brother to the mayor of Chicago. (He also was commerce secretary during the Clinton years.) The ad goes on to note that Obama's "money man" is Tony Rezko, a convicted felon--making the disgraced developer sound like Obama's main fundraiser, which he was not. The ad also declares that "his governor, Rod Blagojevich" has "a legacy of federal and state investigations." His governor? Well, that's true, since Obama is a resident of Illinois. But this is guilt by association. Under such a standard, Obama could run an ad saying, "John McCain--part of a corrupt political machine. His fellow Republican legislator in Arizona--indicted for money laundering." (That would be Rick Renzi, who was cochairman of McCain's 2008 presidential campaign in Arizona.)
In response to this ad, Obama spokesman Bill Burton issued a statement: "Barack Obama was elected to the Illinois Senate as an independent Democrat. He took on the Chicago Democratic organization in a primary to win a seat in the US Senate. And in both Illinois and Washington, he has challenged the Old Guard for landmark ethics reforms."
But, more to the point, the ad came out the morning The New York Timesreported that McCain's campaign manager was paid nearly $2 million for running a Washington outfit set up by Fannie Mae and Freddie Mac to stop stricter regulation of these two entities. Talk about the corrupt Washington machine. McCain's right hand was one of its major players. Yet McCain accuses Obama of being part of a corrupt system. No doubt, Davis approved that message.
On Friday morning, McCain, at a rally in Green Bay, Wisconsin, delivered a speech on the financial crisis. He tore into Wall Street and Washington, proclaiming, "The crisis on Wall Street started in the Washington culture of lobbying and influence peddling." And he named names. He blasted Freddie Mac and Fannie Mae:
These quasi-public corporations led our housing system down a path where quick profit was placed before sound finance. They institutionalized a system that rewarded forcing mortgages on people who couldn't afford them, while turning around and selling those bad mortgages to the banks that are now going bankrupt. Using money and influence, they prevented reforms that would have curbed their power and limited their ability to damage our economy.
McCain noted that years ago he had tried to reform these institutions and had run smack into Washington's same-old/same-old:
At the center of the problem were the lobbyists, politicians, and bureaucrats who succeeded in persuading Congress and the administration to ignore the festering problems at Fannie Mae and Freddie Mac.
Moreover, McCain accused Obama of having been pals with Freddie and Fannie. Obama, McCain pointed out, has taken large amounts of campaign contributions (a total of $165,400) from donors associated with the two institutions. In addition, Obama put a former Fannie CEO, Jim Johnson, in charge of his vice presidential search committee. McCain also charged that Obama has been receiving policy advise from Franklin Raines, another former Fannie CEO. The Obama camp says Raines is no adviser to Obama and that earlier this week Raines sent an email to Carly Fiorina, a McCain adviser, informing her of this. Still, McCain declared:
As part of an effort to beat back the investigation into whether Governor Sarah Palin fired Alaska's public safety directory Walt Monegan because he refused to dismiss a state trooper involved in an ugly divorce with her sister, Palin's attorney filed papers on Monday claiming that Palin fired Monegan because of his "outright insubordination" regarding policy and budgetary matters. The problem with this explanation: it directly contradicts Palin's own story.
In mid-August, Palin spoke with New Yorker writer Philip Gourevitch, who was in Alaska--prior to Palin being named John McCain's running-mate--to do a piece on "the peculiar political landscape" of the state. During his time there, the controversy regarding Monegan's dismissal was in the news in Alaska. And Gourevitch asked Palin about it:
[Palin] said that one of her goals had been to combat alcohol abuse in rural Alaska, and she blamed Commissioner Monegan for failing to address the problem. That, she said, was a big reason that she'd let him go--only, by her account, she didn't fire him, exactly. Rather, she asked him to drop everything else and single-mindedly take on the state's drinking problem, as the director of the Alcoholic Beverage Control Board. "It was a job that was open, commensurate in salary pretty much--ten thousand dollars less"--but, she added, Monegan hadn't wanted the job, so he left state service; he quit.
First, a McCain aide suggested John McCain invented the BlackBerry. But now, another top McCain aide--Carly Fiorina, the former CEO of Hewlett-Packard--says that McCain (and Sarah Palin) would not be qualified to run a major corporation. Really, she did:
As the news broke of the Lehman Brothers meltdown and the rest of the latest financial crisis, John McCain, speaking at a campaign rally in Florida on Monday, angrily declared,
We will never put America in this position again. We will clean up Wall Street. This is a failure.
And in a statement released by his campaign, McCain called for greater "transparency and accountability" on Wall Street.
If McCain wants to hold someone accountable for the failure in transparency and accountability that led to the current calamity, he should turn to his good friend and adviser, Phil Gramm.
As Mother Jonesreported in June, eight years ago, Gramm, then a Republican senator chairing the Senate banking committee, slipped a 262-page bill into a gargantuan, must-pass spending measure. Gramm's legislation, written with the help of financial industry lobbyists, essentially removed newfangled financial products called swaps from any regulation. Credit default swaps are basically insurance policies that cover the losses on investments, and they have been at the heart of the subprime meltdown because they have enabled large financial institutions to turn risky loans into risky securities that could be packaged and sold to other institutions.
Lehman's collapse threatens the financial markets because of swaps. From Bloomberg: