Editore"s Note
Tilting at Windmills

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September 24, 2008

MCCAIN CAMPAIGN STRUGGLES WITH NEW DAVIS CONTROVERSY.... New revelations that Freddie Mac was paying McCain campaign manager Rick Davis' lobbying firm $15,000 a month up until last month has put the McCain gang back on its heels. The available evidence suggests pretty strongly that the information McCain gave voters about his campaign's ties to Freddie Mac was false.

Today, McCain campaign spokesperson/blogger Michael Goldfarb published a 700-word response to the news, and by any reasonable measure, the statement is a complete mess. In the very first sentence, Goldfarb says the reports charge that Davis "was paid by Freddie Mac until last month," which Goldfarb insists is false. Actually, the reports charge that Davis' lobbying firm was the one paid until last month, which is true.

Indeed, it's almost as if Goldfarb didn't read the article he was attacking. Davis lobbied against federal regulations of Fannie Mae and Freddie Mac through the Homeownership Alliance, and once that was done, Davis asked Freddie Mac to put his firm on retainer, for $15,000 a month, for very little work. Not only does the McCain campaign's official response not dispute this point, it doesn't even acknowledge this central revelation.

Goldfarb does make a point of emphasizing that Davis "has never -- never -- been a lobbyist for either Fannie Mae or Freddie Mac." That's true. But as Jason Zengerle explained, that doesn't make the situation any better.

[T]he NYT story doesn't allege that Davis was a lobbyist for Freddie Mac. Rather, the NYT reports that he was a "consultant." And that's actually a crucial -- and, in this instance, damning -- distinction, since, by serving as a consultant rather than as a lobbyist for Freddie Mac, Davis's firm didn't have to disclose its payments from Freddie Mac in federal lobbying reports (which is why we didn't know about them until some ticked-off Fannie and Freddie folks revealed them to the Times). In other words, it looks as if Davis was almost trying to hide the fact that he was getting paid by Freddie Mac.

What's more, Goldfarb bashes the New York Times repeatedly, neglecting to acknowledge that the Times was one of three major news outlets -- Newsweek and Roll Call were the other two -- to report within a few hours of each other about the latest Rick Davis revelations.

The McCain campaign went to quite a bit of trouble this morning to offer a detailed denial that doesn't actually deny the charges at hand, and doesn't even try to answer any of the unresolved questions, including the fact that McCain's public statements now appear to contradict the public record on Davis' activities.

Obama communications director Dan Pfeiffer also issued a statement: "It is now clear that both John McCain and Rick Davis did not tell the truth about Davis's continuing financial relationship with Freddie Mac, one of the actors at the center of this financial crisis. It's troubling not only that Davis's firm -- with which he is still associated and which the McCain campaign paid directly last year -- continued to be compensated by Freddie Mac until as recently as last month, but that the firm did little work and apparently was being paid simply to provide access to the McCain campaign. The question that now needs to be answered is this: did Freddie Mac or any other special interests buy access to John McCain by compensating top officials, including Rick Davis?"

Remember, the McCain campaign walked right into this one, insisting that Fannie Mae and Freddie Mac were largely responsible for the Wall Street crisis, and any associations between a candidate and officials at the lending companies are necessarily scandalous.

Talk about leading with one's chin....

Steve Benen 12:45 PM Permalink | Trackbacks | Comments (30)
 
Comments

Can someone explain what a consultant paid by a third party does on a Presidential campaign ?

Posted by: ScottW on September 24, 2008 at 12:50 PM | PERMALINK

Yes, but it's a P.O.W. chin......

Posted by: steve duncan on September 24, 2008 at 12:53 PM | PERMALINK

Goldfarb does make a point of emphasizing that Davis "has never -- never -- been a lobbyist for either Fannie Mae or Freddie Mac." [Emphais added.]

Never, never? That's a double negative.

Posted by: Haik Bedrosian on September 24, 2008 at 12:53 PM | PERMALINK

Lies, lies, lies, and more lies. Why does McCain keep doing this? He always gets caught. His campaign is so far into the realm of farce that they will never be able to walk it back. All they seem to be able to do is scream "Franklin Raines, Franklin Raines" over and over again.

Posted by: Lori on September 24, 2008 at 12:53 PM | PERMALINK

Can someone explain what a consultant paid by a third party does on a Presidential campaign ?

Work for the Associated Press?

Posted by: Gregory on September 24, 2008 at 12:56 PM | PERMALINK

CB, I mean, Steve wrote: "Indeed, it's almost as if Goldfarb didn't read the article he was attacking."

Yep. That's how the Rethugs do it. Makes it easier.

Posted by: Frak on September 24, 2008 at 12:56 PM | PERMALINK

I keep saying this...."oh the tangle web we weave..."

I think we have a new "L" word..... LIAR!

Posted by: mkrrpc on September 24, 2008 at 12:59 PM | PERMALINK

including the fact that McCain's public statements now appear to contradict the public record on Davis' activities

Wouldn't it actually be that the public record now appears to contradict the McCain's public statements on Davis' activities?

Posted by: Gregory on September 24, 2008 at 1:00 PM | PERMALINK

WALL STREET's RECKONING!
(Yet, it Took 10 Years to Raise MinWage $1.00)

http://www.youtube.com/watch?v=S27yitK32ds


"Rule one: Rush the decision. Time the game to fall in the week before Congress is set to adjourn and just 6 weeks before an historic election so your opponents will be preoccupied, pressured, distracted, and in a hurry.

Rule two: Disarm the public through fear. Warn that the entire global financial system will collapse and the world will fall into another Great Depression. Control the media enough to ensure that the public will not notice this. Bailout will indebt them for generations, taking from them trillions of dollars they earned and deserve to keep.

Rule three: Control the playing field and set the rules. Hide from the public and most of the Congress just who is arranging this deal. Communicate with the public through leaks to media insiders. Limit any open congressional hearings. Communicate with Congress via private teleconferencing calls. Heighten political anxiety by contacting each political party separately. Treat Members of Congress condescendingly, telling them that the matter is so complex that they must rely on those few insiders who really do know what's going on!"

(FYI: Republicans have blocked voting on bills by Dems for more oversight and regulation.)

Posted by: Angellight on September 24, 2008 at 1:00 PM | PERMALINK

I keep waiting for that cathartic moment like the one at the end of Michael Clayton where someone just looks at the panicky, twitching remains of the GOP and says "You are so fucked and you don't even know it."

This implosion has been happening in real time since 2001. They've lost a little bit more every election, they've lost their minds, their president is polling at 19%, their economy is completely exposed, their wars have been massive failures and their candidate has lost even the imaginary title of 'maverick' as he humps along blindly toward the finish.

Sure, the Democrats have been largely hopeless, lost, cowed by their guilt and complicity. But they, unlike the Republicans, can still be redeemed because enough of them have basic consciences. Many have even made the right choices.

But as bad as they've been. As compromised as they are. The GOP has their fingerprints all over the mess they've made of America and they ain't fooling anyone but themselves.

They are so FUCKED and they don't even know it.

Posted by: Jay B. on September 24, 2008 at 1:01 PM | PERMALINK

Nothing that many says, ever, is true. Right?
Can we act on that assumption from now onwards?

Posted by: SteinL on September 24, 2008 at 1:02 PM | PERMALINK

It's not that these people are too crooked or mendacious to run the country. They're just too stupid.

Posted by: dr. bloor on September 24, 2008 at 1:03 PM | PERMALINK

They are crooked, mendacious AND stupid.

Posted by: ohcomeon on September 24, 2008 at 1:07 PM | PERMALINK

It seems that McCain @ Friends think that if they act really scary and say nasty things they can make the NYT grovel and go back to being what can be best described in street lingo: McCain's bitch. This tactic does not always work. Sometimes it just pisses people off. Sometimes it REALLY pisses people off. It will be interesting to see how the NYT reacts.

Posted by: gorp on September 24, 2008 at 1:10 PM | PERMALINK

Debate question: "Senator McCain, your campaign has been caught in a number of lies and distortions. Is there any reason for voters to believe that your administration would not continues these practices?"

Followed by: "Candidate's head explodes. Film at eleven!"

Posted by: Dennis - SGMM on September 24, 2008 at 1:11 PM | PERMALINK

How may times have I said it? McCain and his team are chumps, political morons, they can't play in this league, not even remotely close.

They egged on Obama to go to Europe, too. That one worked out so well.

I'm sick of these single-digit leads in the polls, I am so ready to have these incredible asshole crushed electorally.

Congress is ours. The presidency is ours. A big majority of the the governorships are ours. I am sooooooo looking forward to the official writeup of how these grossly offensive asshole have been obliterated, and I am going to twist the knife in with acid for weeks. Fuck you, lying Republican looters, you are so over.

Posted by: paradox on September 24, 2008 at 1:13 PM | PERMALINK

It seems McCain could resist everything but temptation.

That's Just What I Said

Posted by: Dale on September 24, 2008 at 1:18 PM | PERMALINK

Angellight said it best I love those rules :)

Now watching MSNBC Andrea Mitchell give an anaysis of the political happenings of the past several years during the Bush administration.

Actually, here, Andrea Mitchell being wife of former Federal Reserve Board Chairman Allen Greenspan should along with Bush announce their resignations to America at this time. Both should be in orange suits hand cuffs in front of a citizens tribunal rather than just wandering around the media screen.

Its just incredible the mismatch that is going on in this time. Obviously America now knows we have one of the most sopisticated rip offs an economic society has ever seen with Mainstream Media complicit in the lies and distortion deliberately directed to profiteer tax money. Just incredible.

Posted by: Megalomania on September 24, 2008 at 1:20 PM | PERMALINK

Remember, the McCain campaign walked right into this one, insisting that Fannie Mae and Freddie Mac were largely responsible for the Wall Street crisis

And even that's a bizarre claim. These GSE's are under investigation for lying about how bad off they were ... and a lot of other non-GSE's are under investigation for the same thing, too.

But they didn't 'cause' the crisis unless you want to blame the so-called "secondary market" for making too much money available for lending. There's too much DIRECT corruption going on for me to want to blame these GSE's for some abstract economic phenonmenon.
.

Posted by: Grand Moff Texan on September 24, 2008 at 1:36 PM | PERMALINK

Looks like Sarah Palin was just the latest in a long line of people John McCain didn't vet properly before hiring.

Posted by: Th on September 24, 2008 at 1:46 PM | PERMALINK

Looks like Sarah Palin was just the latest in a long line of people John McCain didn't vet properly before hiring.

If memory serves me right, Davis is a longtime friend and confidate of McCain's (unlike Schmidt and the rest of Karl Rove's pack of assholes). This wasn't a failure to vet anybody. It isn't very likely McCain didn't know of Davis' ties to big business -- "access" was what Freddie was paying him for, after all. Corrupt crony coziness has been what McCain has been all about since the Keating Five.

Posted by: Gregory on September 24, 2008 at 1:53 PM | PERMALINK

What dismays me is that the FBI is investigating these financial institutions. They have messed up so many other investigations, how can they be trusted to handle this responsibly and on a timely basis? I don't have a solution except that all of "US" have to take personal responsibility for the solution. Contact your investment bank/credit card servicing institution and work out your own bailout plan with them. Demand that all your records be sent to you, at their cost, with all documentation for each charge, including the inquiries of the credit reporting agencies and their responses. Without transparency, there is no accountability.
I'd love to see the FOIA requests of the FBI of all documents they uncover, with no editing or blocking of names, addresses, etc. Put the shoe on the other foot. Let them see how it is to have no privacy, to be stripped naked in front of the world, and have to answer for every blemish. That is the strip show I want to see.
I am committed to Oneness through Justice and Transformation
peace,
st john

Posted by: st john on September 24, 2008 at 1:56 PM | PERMALINK

Money for access or protection money?

Posted by: Ross Best on September 24, 2008 at 2:13 PM | PERMALINK

What makes me interested in the DOJ investigation is the timing, where it is announced after this blows up, but Tony Farto said this bailout had been in the planning cycle for months.

Keep in mind that the DOJ is hopelessly politicized with RSR hacks, and have already demonstrated that they will railroad any D in their way (see: Siegelman). Keep in mind also that because of the investigatory powers that the DOJ can also plant or spike evidence without any fingerprints. And, because of the "investigation", the WH won't have to comment on anything related to this fiasco.

Add this together and I'd guess the FBI is there to find out the real deal and protect by any means necessary the cronies. Those who are D's will of course be offered up to sacrifice and made scapegoats. And then, the whole mess gets buried with W and his merry band of cronies off the hook. BTW, I'm pretty sure that's what Section 8 in the Paulson proposal is really all about, CYA.

Posted by: rugger0 on September 24, 2008 at 2:27 PM | PERMALINK

I was just wondering if the Wall Street Journal ran their bullshit article about Obama and Ayres because they knew this shoe was going to drop...

Posted by: Gregory on September 24, 2008 at 2:41 PM | PERMALINK

BOOOOOYAAAAAAAAH!!!!

Posted by: Patrick on September 24, 2008 at 2:41 PM | PERMALINK

"...Talk about leading with one's chin...."

But only because the NYT picked it up otherwise his ads get little scrutiny and he gets away with lying his butt off always accusing Obama of exactly what he himself is doing.

Again..From drift glass:
“I pledge allegiance to the Fed
of the United Banks of America,
and to the Republicans who fucked us all
Ruination under Dubya, in the poor house,
With Liberty and Justice for sale.”
(snip)
Sorry, Republicans, but somewhere between the burning of Baghdad and the drowning of New Orleans you used up your reserve of “Trust me” for the next thousand years.

You're a Party of liars, looters and whores who have cried “Wolf!’ while you picked our pockets far too many times for anyone in their right mind to give you the unsupervised access to a gas-station shitter, much less the keys to the Treasury..."

Posted by: bjobotts on September 24, 2008 at 3:02 PM | PERMALINK

McCain didn't know about Davis. He didn't know about Carly's $45M. What does he know about the people around him? It appears he vetted them as thoroughly as he vetted Palin.

Posted by: Mudge on September 24, 2008 at 3:05 PM | PERMALINK

The Davis issue is why McCain is suspending his campaign to "deal" with the financial crisis. Seriously, he hasn't shown up for his job as senator in ages and he thinks people will see him as a statesman for bailing out of his flailing campaign for a few days?

Posted by: ogo on September 24, 2008 at 3:11 PM | PERMALINK

Add Hatfill and Ivins to my previous post on FBI follies and why I'm not sure they're investigating what we think they are.

As noted by Ogo, McSame hasn't been on the job for ages. How bad is it?

Well, Tim Johnson of South Dakota had a brain hemorrhage and missed almost a year, but he still showed up for more votes than McSame in this Congress. That's showing the leadership, old fart.

Posted by: rugger0 on September 24, 2008 at 5:29 PM | PERMALINK




 

 
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