Happy Thanksgiving, America!
If you’re not feeling very “happy,” remember, no matter how bad things are, they could always get worse (and we may be going there). So, whatever you have now, be thankful for that.
Speaking of thanks and of things getting worse, here’s a shout out to the so-called “Super Committee:”
Thanks for nothing!
What a bunch of losers.
Hmmm, speaking of losing… I wonder if anyone on the Supercilious Committee shorted the market before their announcement that they had nothing to announce. Hey, maybe they waited until the end of the day on Monday – when it was already known that they had sold America short – to break the news, so they could add to their shorts as stocks broke support levels.
No “maybe” about, it in my book.
Oh, you don’t think they would do that – short the market? You think that would be unethical? You think that would be illegal? You think that’s insider trading?
It’s not any of those things, according to Congress.
If you’re about to sit down to your big Thanksgiving dinner and are scared you’ll eat too much, don’t worry. You’re about to lose your appetite, and probably get sick, too.
What’s Really Going on in Washington
Last Sunday, November 13, 60 Minutes unleashed a story titled “Insiders.”
If you didn’t see the segment, it was about “How politicians and their friends get rich off insider stock tips, land deals, and cronyism that would send the rest of us to prison.”
By the way, that’s not a quote from 60 Minutes. That’s the subtitle of “Throw Them All Out,” a just-released book by Peter Schweizer. 60 Minutes “broke” its inflammatory story based completely – 100% – on Schweizer’s book.
I read “Throw Them All Out” in just one quick sitting. I couldn’t put it down. It’s not long, but it is absolutely, unequivocally, full of explosive revelations about what is really going on in Washington. You have to read it. You owe it to yourself. You owe it America’s future.
If everyone in America read this book before next year’s elections, we would collectively Throw Them All Out…
As soon as I finished the book, I contacted Peter.
Turns out, besides being the William J. Casey Fellow at the Hoover Institution at Stanford University, and the author of “Do As ISay, Not As I Do;” “Reagan’s War;” and “Architects of Ruin,” he is also a very cool guy who happens to be hot under the collar about what’s happening in America.
We have a lot in common – being steamed about the pain that Americans are feeling, that is.
Peter said to me yesterday – and this is a direct quote – “It’s outrageous that the permanent political class in Washington is able to skirt the rules and laws that apply to the rest of us. This is not about a few corrupt politicians. This is about an entire system that has been compromised.”
You’re going to want to read the book, even if you saw the 60 Minutes segment, because there are many more unbelievable, very, very juicy exposés in the book than the segment could ever have served up
And since it’s Thanksgiving, I thought I’d roast a few turkeys – here and now.
What follows are excerpts taken directly from “Throw Them All Out” (with Peter’s permission):
“Throughout 2009, Washington was consumed by the Patient Protection and Affordable Care Act, or what became commonly known (at least to its critics) as Obamacare. The health care industry and pharmaceutical companies employed thousands of lobbyists to shape the legislation.
“One of those at the center of shaping the bill was Senator John Kerry of Massachusetts. He serves as a member of the Health Subcommittee on the powerful Senate Finance Committee. As the bill snaked its way through the House and Senate, where Kerry was actively pushing it, the Kerrys began buying stock in the drug maker Teva Pharmaceuticals. In November alone they bought close to $750,000 in the company.
“Senator Kerry wasn’t the only congressional trader in pharmaceuticals. John Tanner, a member of the House Ways and Means Committee bought up to $90,000 worth. Also buying Teva were Senator Jim Webb of Virginia and Congressman Vern Buchanan of Florida. Senator Tom Carper of Delaware sat next to Kerry on the Senate Finance Committee’s Health Subcommittee. Carper began buying health care stocks that would benefit from the legislation he was supporting. He bought…Nationwide Health Properties…Cardinal Health and CareFusion. Congresswoman Melissa Bean of Illinois…along with her husband…are active traders (however) the only stock purchases they made during 2009 were in the health care sector. They bought shares in Cardinal Health, CareFusion…Mylan and Teva.
“Congressman Jared Polis of Colorado…was a tireless advocate for Obamacare. While Polis was praising the benefits of health care overhaul, he was buying millions of dollars’ worth of a private company called Bridge Health International. One of the things Bridge Health offers is medical tourism: providing less expensive medical procedures in countries such as China, Mexico, India, Thailand, Costa Rica and Taiwan. Polis put between $7 million and $35 million into the company. (Note from Shah: There’s a lot more on what Polis did, but you’re going to have to read the book, because it just gets better…)
“Congressman John Boehner, who was leading the opposition to Obamacare in the House of Representatives, may have been fighting John Kerry on policy matters, but he was entirely allied with him when it came to investment decisions. On December 10, 2009, Boehner bought numerous health insurance company stocks, including tens of thousands of dollars in Cardinal Health, Cigna, and Wellpoint…Boehner purchased shares in Big Pharma companies Amgen, Johnson & Johnson, Forest Labs, Covidien, and Pfizer. He also bought shares in CareFusion. “
To see who else bought what and how much they made – you’ll be very jealous – read the book.
These weren’t lucky trades. They were sure bets.
That’s just what happened around one bill working its way through Congress.
Of course, before the advent of Obamacare, we were dealing with the credit crisis, and Congressmen were dealing their way into some lucrative positions and very much out of harm’s way, long before the public was told how bad things really were becoming. Take a look:
“One of those who played a central role in government decisionmaking during the crisis was Congressman Spencer Bachus, then the ranking Republican on the House Financial Services Committee. Bachus was regularly involved in private meetings and phone conversations. As he was having those high-level discussions, however, he was aggressively buying and selling stock options.
“From July 2008, when the first rumors of the crisis were heard, to the dark days of November, with international markets in near free fall, Bachus engineered no less than forty options trades, betting that the market, a sector of the market, or an individual company would go up or down at critical times. On September 8, Hank Paulson received a disturbing call from General Electric CEO Jeffrey Immelt. GE was having trouble selling its bonds, Immelt quietly told him. Just two days later, Bachus shorted General Electric options. He did so four times in a single day…and more than doubled his money.”
There were others who made money on the crisis using their inside information, but even more insiders saved tens of millions of dollars by dumping stocks while the public was told not to panic.
Not being the type to name names, I’m just going to spill a few here. Congressman Jim Moran, Democrat of Virginia. John Kerry, again. Sheldon Whitehouse. Dick Durbin. Representative Shelley Capito. Rahm Emanuel. And others.
It’s getting late, and you may be hungry for more turkey stories, but, I don’t want to ruin your appetite for the book. So I’ll just leave you with these gems:
- You will love reading how Nancy Pelosi manipulated the legislative agenda to make money on an IPO of Visa, one of at least 10 lucrative IPOs she and her husband enjoyed so far in her Congressional career.
- You will really love the one about the runway near her house in Napa Valley’s wine country. It’s just out-of-control.
- Or, how Pelosi, Dennis Hastert, and Judd Gregg “earmarked” hundreds of millions of dollars of taxpayer money to put in roads, a six-mile rail system for almost a billion dollars, or improve a project near a property they owned and wanted to see appreciate, or that they owned and had earmarked money to improve personal projects.
- And when it comes to “green innovation,” you will literally be sick to learn how many TENS of BILLIONS of dollars have just been wasted – excuse me, invested – in companies controlled by campaign donors, including ones owned or controlled by several billionaires and the likes of the ubiquitous Goldman Sachs.
I’m getting ready for some turkey myself, so forgive me if I don’t have time to get into the mystery man I alluded to in Sunday’s issue of I&I. If you read “Throw Them All Out,” you will figure it out.
Otherwise, I’ll give him up next Thursday. (That’s called a “tease.”)
So again, Happy Thanksgiving.
And while you’re giving thanks, don’t forget to thank Peter Schweizer for having the guts to name names and uncover some of the mounting garbage stinking up America.
Get the book, and help me and Peter THROW THEM ALL OUT!