“Incestuous Connections”: Will Federal Funds Subsidize Tagg Romney’s Private Equity Bonanza?
Nobody with the bad manners to ask the question would be likely to get the opportunity at the upcoming presidential debate, but someday—especially if Mitt Romney enters the Oval Office —someone will ask about his son Tagg’s privte equity firm.
Like the businesses operated by the first President Bush’s sons three decades ago, Tagg Romney’s Solamere Capital is rife with potentially embarrassing conflicts of interest. Founded in 2008, by eldest son Tagg and his father’s chief fundraiser Spencer Zwick, Solamere is a “fund of funds” representing more than a dozen private equity outfits, including Mitt’s Bain Capital.
What Solamere’s partnerships and investments also show is the stunning reliance of these rugged millionaire individualists on government contracts and programs. Their financial addiction to federal funds is almost amusing, especially given Romney’s infamous remarks about the “47 percent” who supposedly pay no taxes and depend on government largesse to meet all their needs.
Reporter Lee Fang closely scrutinizes those issues and Solamere’s incestuous connections with the Romney presidential campaign in the current issue of The Nation, with the support of the Investigative Fund (where National Memo editor-in-chief Joe Conason serves as editor-at-large).
Consider the man who hosted the $50,000-a-plate fundraiser where Romney made those comments in his huge, luxurious Boca Raton home. Marc Leder’s Sun Capital private equity firm is a partner in Solamere—and also owns part of the Scooter Store, a company that markets motorized wheelchairs, which Medicare beneficiaries buy with federal funds. Unfortunately the growth of the motorized scooter industry has relied heavily on as much as $500 million annually in improper and even fraudulent Medicare billing.
The Affordable Care Act—which Mitt Romney has vowed to repeal—contains a section requiring stringent reform of the motorized wheelchair benefit to prevent fraud. Would President Romney restore that reform to save Medicare funds even if his son’s business would suffer?
Another health sector suffering from rampant fraud is pediatric dentistry, with scandals in several states that involve very expensive, totally unnecessary treatments of poor children that are paid for by Medicaid—and earn huge profits for “dental management companies” owned by private equity firms. If Solamere is earning huge profits from dental mismanagement, would a Romney administration’s Medicaid agency crack down—or turn a blind eye?
Aside from exploiting Medicare and Medicaid, the private equity industry sees major profit opportunities in education—and in particular the for-profit colleges whose dubious practices and educational failures have become controversial in recent years. As Fang recalls, Mitt Romney himself promoted a for-profit institution called Full Sail University during a town hall event in New Hampshire last year, claiming that it could help students “hold down the cost of their eduation.”
Full Sail is actually the third most expensive college in the country—and happens to be owned by TA Associates, a private equity operation associated with the Romney financial empire. Would a Romney administration continue the current efforts to reform the for-profit colleges? Or would it coddle an industry that is becoming notorious for ripping off students and leaving them in debt and unemployed, after sucking down their federal loan funds?
Fang’s reporting may provide an instructive preview of the years to come in a Romney administration, with various Bush-like sons cashing in on White House connections. But the story of Solamere also suggests the hollowness of Romney’s anti-government rhetoric. More and more, the most apt description of private equity is “no, you didn’t build that.”
By: Joe Conason, The National Memo, October 16, 2012
“Mitt Romney The Product”: A New Romney Appears On A Monthly, Weekly And Sometimes Daily Basis
As he tries to engineer a comeback in this week’s presidential debate, President Obama needs to recognize two things. First, when it comes to politics, Mitt Romney treats himself as a product, not a person. Second, Republicans cannot defend their proposals in terms that are acceptable to a majority of voters.
You can imagine Romney someday saying: “Politicians are products, my friend.” There’s no other way to explain why a candidate would seem to believe he can alter what he stands for at will. His campaign has been an exercise in identifying which piece of the electorate he needs at any given moment and adjusting his views, sometimes radically, to suit this requirement.
In that respect, Romney does Richard Nixon one better. When Nixon was looking to revive his career in the 1968 campaign, the terribly scarred veteran of so many political wars realized his old persona wouldn’t sell. And so he created what came to be known as the “New Nixon” — thoughtful, statesmanlike and tempered. The operation worked until Nixon’s old self got him into trouble.
But manufacturing the New Nixon took years of painstaking effort. New Romneys appear on a monthly, weekly and sometimes daily basis. Thus did Romney move far to the right on immigration last year because he needed to dispatch nomination rival Rick Perry, a moderate on that one issue. Since then, Romney has been trying to backtrack to appease Latino voters.
During the same nomination battle, Romney abruptly changed his tax policy to placate the supply-side-Wall-Street-Journal-Grover-Norquist axis in the GOP. Romney’s initial tax proposal was relatively modest. The right wasn’t happy. No problem, said Romney, and out came his new tax plan that included a 20 percent cut in income tax rates, “rate cuts” being a term of near-religious significance to supply-siders.
Romney pointedly asserted (again, in the primaries) that he wanted the tax cut to go to everyone, “including the top 1 percent.” But this doesn’t sell to swing voters now, especially after the leaked video in which Romney wrote off 47 percent of Americans as incorrigibly dependent. So in the first debate, Romney tried to pretend that he didn’t want to cut rich people’s taxes. He reassured us that “I’m not going to reduce the share of taxes paid by high-income people.” (By the way, he could cut taxes for the rich a lot and still keep their “share” of the government’s overall tax take the same.)
And then there’s abortion, an issue about which you have to wonder if Romney cares at all. Without much effort, you can find video online in which Romney declares with passion and conviction that he is absolutely committed to a woman’s right to choose — and video in which he declares with equal passion and conviction that he is absolutely opposed to abortion and committed to the right to life. Just recently, Romney moved again, offering this shameless gem of obfuscation to the Des Moines Register editorial board: “There’s no legislation with regards to abortion that I’m familiar with that would become part of my agenda.” There is no candidate I am familiar with who has tried to have as many positions on abortion in one lifetime as Mitt Romney.
But there’s an underlying reason for Romney’s shape-shifting. It’s the same reason Rep. Paul Ryan always resorts to impressive-sounding budget speak and mathematical gobbledygook to evade explaining the impact of his budgets on actual human beings.
Romney, Ryan and the entire right know that their most deeply held belief — the one on which they won’t compromise — is rejected by the vast majority of Americans. That’s their faith that every problem in the economy and in society can be solved by throwing more money at rich people through tax cuts.
Vice President Biden kept Ryan on the defensive during most of Thursday night’s debate precisely because he refused to let anything distract him from driving this central point home. Without pause and without mercy, Biden kept bringing viewers back to the obsession of the current Republican Party with “taking care of only the very wealthy.”
Obama doesn’t have to look angry or agitated in this week’s debate. He simply needs to invite voters to see that Romney, the product, will give them no clue as to what Romney, the person, might do as president. Romney keeps changing the packaging because he knows that the policies inside the box are not what voters are looking for.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, October 14, 2012
“Not Very Much”: Without The Economy, What Does Romney Have Left Against Obama?
Last Friday’s new job numbers demonstrate that Barack Obama has started to turn around the economy George W. Bush ran aground.
Don’t get me wrong. A 7.8 percent jobless rate is way too high. And the effective jobless rate which includes part-time workers who want full-time work and Americans who have given up hope of ever finding jobs is even worse.
But there have been 31 straight months of growth in the number of private sector jobs. The unemployment rate is still high but there has been a slow and steady decrease in the jobless rate. The picture is even brighter in the battleground states that will pick the next president. In Iowa, the unemployment rate is only 5.5, and it is 5.7 percent in New Hampshire. The unemployment rate would be even lower if the GOP majority in the House of Representatives had approved the president’s proposed American Jobs Act which would have given state and local governments the funds to rehire hundreds of thousands of the teachers, police officers, firefighters, and other public employees who had lost their jobs in the last few years.
One of the striking things about recent national surveys is that Americans now think that Barack Obama is as capable of handling the economy as Mitt Romney. The Battleground national poll conducted for George Washington University last week shows that there are almost as many voters (47 percent) who think President Obama is the best candidate to handle the economy as there are voters (49 percent) who think Romney is the better man for the job.
Romney’s business credentials were his ace in the hole but he played his hand poorly. The steady increase in employment has certainly helped restore trust in the president’s capacity to nourish the economy but the GOP nominee has undermined his own image as a successful entrepreneur.
Romney is his own worst enemy. The infamous “47 percent” video exposed Romney’s callous disregard for Americans like seniors and veterans who are economically dependent on government benefits. The video clearly had an impact on Romney’s standing. The Battleground survey shows the president with a big advantage (56 percent to 40 percent) over Romney for standing up for the middle class.
If the president does win re-election, I suspect that many pundits will say the 47 percent video was the turning point of the campaign. But I think the real pivot point was during the spring when the Obama campaign exposed what Rick Perry called Romney’s time at Bain Capital a career in “vulture capitalism.” At the time, most Democratic insiders dismissed the anti-Bain preemptive attack ads, but they put Romney on the defensive on the only issue that could help him win the campaign. The president also helped himself when he adopted an aggressive message of economic populism in the fall of 2011 after he finally got frustrated over Republican obstructionism.
Monday, Romney gave a speech on foreign policy at the Virginia Military Institute. He has talked about national security a lot lately, and the Romney campaign’s focus on foreign policy may be an admission by Romney that he has lost the edge he had over the president on the economy. Romney’s new emphasis on foreign policy is counterproductive since few voters care about it and because voters give the president good marks for international relations. According to the Battleground poll, few Americans indicate that the wars in the Middle East (4 percent) or terrorism (2 percent) are the most important issues in the campaign. By a margin of 50 percent to 44 percent, voters choose the president as the candidate best able to handle foreign policy.
A story in Politico on Tuesday indicated that the Romney family is pushing the candidate to de-emphasize his anti-Obama economic rhetoric. But if the GOP candidate stops beating up on the president for his economic performance, what does Romney have left? The answer is not very much.
By: Brad Bannon, U. S. News and World Report, October 9, 2012
“Public Message Vs Private Message”: What Mitt Romney Says When He Thinks The Public Won’t Hear Him
Mitt Romney, speaking in Virginia today, on the Middle East;
“I know the president hopes for a safer, freer, and a more prosperous Middle East allied with the United States. I share this hope. But hope is not a strategy.”
Mitt Romney, speaking to donors in Boca in May, on the Middle East:
“[S]o what you do is, you say, you move things along the best way you can. You hope for some degree of stability, but you recognize that this is going to remain an unsolved problem … and we kick the ball down the field and hope that ultimately, somehow, something will happen and resolve it.”
Hmm. It’s almost as if what Romney says in private, when he thinks the public won’t hear him, differs from what he says in public.
Indeed, towards the end of today’s speech, Romney went on to say, “I will recommit America to the goal of a democratic, prosperous Palestinian state living side by side in peace and security with the Jewish state of Israel. On this vital issue, the president has failed, and what should be a negotiation process has devolved into a series of heated disputes at the United Nations. In this old conflict, as in every challenge we face in the Middle East, only a new president will bring the chance to begin anew.”
Now, as a substantive matter, the notion that “a new president” who has no experience in or working understanding of foreign affairs will suddenly transform the peace process is pretty silly, but there’s another, more obvious problem.
We know Romney doesn’t mean what he’s saying. We know this, of course, because Romney’s said so.
The “47 percent” video didn’t leave any ambiguities in this area. The Republican spoke of “the Palestinians” as a united bloc of one mindset, arguing, “I look at the Palestinians not wanting to see peace anyway, for political purposes, committed to the destruction and elimination of Israel, and these thorny issues, and I say there’s just no way.”
Romney then added he intends to show no leadership in this area at all, “hoping” — remember, “hope is not a strategy” — that someone other than the United States will somehow take the lead. If elected, “recommit America” to anything, except for letting others worry about the dispute after he “kicks the ball down the field.”
By: Steve Benen, The Maddow Blog, October 8, 2012
“Lying For Jesus”: Is Romney Now Lying When He Admits His 47% Comments Were A Lie?
Mitt Romney has stood by and defended his infamous comments, that he believes 47% of Americans “are dependent upon government,” and “believe that they are victims.” The viral video’s release last month by Mother Jones was a game-changing moment for an already-rocked campaign that was fraught with internal turmoil. But now, after lying during the presidential debate 27 times — and not even being forced to defend his “47 percent” comments, Mitt Romney is claiming that those comments just “didn’t come out right,” and were “completely wrong.”
“Well, clearly in a campaign, with hundreds if not thousands of speeches and question-and-answer sessions, now and then you’re going to say something that doesn’t come out right,” Romney last night told Tea party conservative Fox News talk show host Sean Hannity. “In this case, I said something that’s just completely wrong. And I absolutely believe, however, that my life has shown that I care about the 100 percent and that’s been demonstrated throughout my life. And this whole campaign is about the 100 percent.”
In the leaked video from a May $50,000 a plate fundraiser, Romney had told supporters:
“There are 47 percent of the people who will vote for the president no matter what. There are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it.”
“Forty-seven percent of Americans pay no income tax,” Romney had added, and it was his role “to worry about those people. I’ll never convince them they should take personal responsibility and care for their lives.”
Last month, when the video surfaced, Romney did not for one minute deny he made those comments, and he and his campaign stood by and defended them:
“I am talking about a political process of drawing people in my campaign… My campaign is about helping people take more responsibility,” Romney said, and infamously added, merely that his comments were “not elegantly stated.. I am sure I can state it more clearly and effectively than I did in a setting like that.” (An exceptionally elegant setting, mind you.)
Joh Aravosis at AmericaBlog put together this compelling report:
So Romney lied to his top donors. Why? Why did he lie to them? Has he lied to other top donors? Is he lying to us now?
Why didn’t Romney realize his comments were completely wrong a month ago? Why did he defend them if he knew they were “completely wrong”? So you mean, Romney lied to the American people for the past month when he said his comments were accurate (albeit inelegant)?
And what happened to cause Romney to only now realize that his comments are wrong?
I’ll tell you what happened. Romney’s son Tagg is busy “reinventing” his dad for the 100th time, and one of the things he told poppy is that he has to come clean on the 47% remarks.
This man is incredibly disingenuous. He will say anything to anyone to get elected President. He used to claim that he was better on gay rights than Ted Kennedy. Now he panders to the farthest of the gay-hating far-right, while his wife campaigns at conferences sponsored by officially-designated hate groups. Ted Kennedy, he ain’t.
But then what is Mitt Romney? What does he actually believe on anything? He’s flip-flopped on gay rights. He flip-flopped on health care reform again and again and again and again and again and again. He’s flipped onimmigration a few times, on gay adoption, the auto bailout, on guns, on his own college, on SuperPACs, on Solyndra, on carbon pollution, on stem cells, on abortion, on contraception, on Iraq, on climate change, on taxes, on the recession a lot.
He flip-flopped on catfish.
He even flip-flopped on flip-flopping.
That’s why fellow Republican, fellow Mormon, John Huntsman called Romney “a perfectly lubricated weathervane on the important issues of the day.”
That’s a nice way of saying that Mitt Romney is a congenital liar.
Indeed.
By: David Badash, The New Civil Rights Movement, October 5, 2012
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 