Recently, I read an article on Reuters about how Obama ripped McCain for joking that $5 million is a fit definition for being rich. But it wasn’t the article that caught my eye but rather a comment left by a reader:
If you want 4 more years of George Bush policies, vote for McCain. If you like the price of oil, google the enron loophole, and see how Phil Gram (McCains econimic advisor) gamed the system. Google the Keating 5 and John McCain. Google McCain cheating on his wife. Google McCain graduating at the bottom of his class. This guy is not qualified to be president.
Pretty bold statements. But is he right? Let’s see what Google reveals.
Phil Gramm and the Enron Loophole
Sounds like a title from a serialized mystery novel series, doesn’t it. Given that Phil Gramm is/was John McCain’s top economic advisor, there’s a certain level of scrutinization to be made with this guy. Although McCain claims that Gramm is no longer part of his campaign that still doesn’t mean that Gramm still doesn’t play an influence behind closed doors. The real question is: What role has Phil Gramm played in our political system?
In 1999, then Senator Phil Gramm worked on a bill known as the Gramm-Leach-Bliley Act that would effectively gut the Glass-Steagall Act. The end result would be that commercial banks, investment banks, and insurers would be allowed to merge, an act that would have violated antitrust laws under the Glass-Steagall Act. Gramm was the primary sponsor of this bill since he had received over $4.6 million in donations from different finance, insurance, and real estate institutions over the previous decade. After the Act was passed, many banks and other financial institutions merged almost immediately, as if they were just waiting for this legislation to be passed.
To make matters even worse, Gramm, along with four other co-sponsors, helped draft and pass the Commodity Futures Modernization Act of 2000. Part of this bill, what has become known as the “Enron Loophole“, exempts energy speculators who make trades electronically from US regulation. The loophole was drafted by Gramm in cooperation with lobbyists for the Enron Corporation. This little loophole is what many claim to be the very thing that allow for the Enron scandal to happen. But the real kicker is that, at the time when the bill was drafted, Gramm’s wife was on Enron’s board of directors.
After his Senate career, Gramm was (or still is) a vice-chairman for UBS, a Swiss-based investment bank. At the time when Gramm was advising McCain, Gramm was being paid by UBS to lobby Congress about the current mortgage crisis. Because of his association, Gramm has been partially blamed for helping to deregulate the banking industry that allowed financial institutions like UBS to practice the sort of predatory lending practices that cause the mortgage crisis to begin with.
Obama has called for the closing of the “Enron Loophole“. Then again, so has McCain. But the question is: Why would McCain allow someone like Gramm to offer him economic policy advice given Gramm’s record? Doesn’t make any sense.
The Keating Five
During the U.S. Savings and Load crisis in the 80’s and 90’s, a gentleman named Charles Keating was being investigated for the corrupt mismanagement of the Lincoln Savings and Loan Association in Irvine, California. Due to the deregulation of savings and load associations in the early 80’s, Keating was able to make highly risky investments with money from deposits in the form of land, equity in real estate development projects, and high-yield junk bonds. By 1984, Lincoln’s assets had increased from $1.1 billion to $5.5 billion. In the end, Keating served a five year sentence in prison due to his corrupt practices.
So what does this have to do with McCain? As it turns out, McCain knew Keating prior to the scandal breaking out and became personal friends with Keating after meeting in 1981. Since then, McCain received $112,000 in political contributions from Keating and McCain’s wife, Cindy, and her father invested $359,100 in a Keating shopping center a year before McCain met with regulators.
The story broke and five Senators (Alan Cranston, Dennis DeConcini, John Glenn, Donald W. Riegle, and John McCain) were being accused of improperly aiding Keating. The reason for these accusations was due to a meeting that the five Senators had with regulators in 1987 to discuss the government’s investigation of Lincoln. It wasn’t until this meeting that McCain and others learned that Lincoln was under criminal investigation, at which point McCain severed all ties with Keating.
McCain was cleared of any wrong doing but even McCain himself admitted that it looked bad. If anything, McCain was guilty of having bad judgement in his affiliation with Keating and allowing himself to be entangled in a very unusual meeting with regulators.
Ditching the First Wife
I wouldn’t go so far as to say that McCain has had a problem with infidelity. Although it’s true that McCain urged his first wife, Carol, to grant him a divorce so that he could marry Cindy, it is not known whether his marriage was already estranged prior to him dating Cindy. As far as anyone knows, him and Carol remain on good terms. Whether he cheated on Carol or not is mere speculation. No know knows the full details except him and his family. Quite frankly, regardless of whether anyone likes McCain or not, this isn’t really anyone’s business anyways. He’s now married to Cindy and has been married to her for quite sometime.
Underachiever?
McCain has joked in the recent past that he graduated in the bottom fifth of his class. Although this isn’t all that critical now, it is ironic that McCain’s academic achievements aren’t great, especially considering that he’s a candidate for the President of the United States. McCain attended the United States Naval Academy where he had conflict with higher-ranking personnel, didn’t always obey the rules, and ended up with a low class rank (894 of 899). Showing little interest in improving, McCain did well in subjects that he was interested in but only did enough to pass the sujects he didn’t like. McCain graduated in 1958 and went on to serve as a naval pilot on the USS Intrepid and USS Enterprise.
So what does all this mean? For starters, no one can question McCain’s military record. There’s no doubt in my mind that McCain has served his country well while in the Navy. And there’s no question that McCain has a wealth of experience due to the 16+ years of time he has spent in Congress. But what I question though is the 16+ years he has spent in Congress. Do we really need someone who has spent that much time as a Senator in the White House? It’s clear that McCain has made a few poor choices in judgement and, granted, no one is perfect. But stack that up against some of the folks McCain has associated himself with recently and in the past and you start to wonder whether he’s fully qualified to serve the highest office in the land.
By comparison, Barack Obama may not have as much experience nor the military record McCain has, but what Obama does bring is an impressive academic background (with 12 years as a Constitutional Law professor), a sense of integrity and vision, and a determination to work with all members of Congress to solve this countries biggest problems. Given the severity of the problems in the United States, I honestly believe that the “safe choice” isn’t all that safe. Take a chance, have a little faith, and vote for Barack Obama.