How Privileged Democrats Pay for Their Houses

[Guest]

Michelle Malkin

Like millions of Americans, Delaware Republican Senate nominee Christine O'Donnell has had trouble covering her mortgage and other bills over the years. Her opponents consider this a scandal of disqualifying proportions. But there's a bigger disgrace: It's all the sanctimonious Democrats who have exploited their entrenched political incumbency to pay for multiple mansions and vacation homes -- while posing as vox populi.

Former senior senator from Delaware and current Vice President Joe Biden has a custom-built house in Delaware's ritziest Chateau Country neighborhood. It is now worth at least $2.5 million and is the Bidens' most valuable asset. Biden tapped campaign funds to pay for his compound's lawn needs. He secured the new estate with the help of a corporate executive who worked for Biden's top campaign donor, credit card giant MBNA.

In 1996, Biden sold his previous mansion to MBNA Vice Chairman John Cochran. The asking price was $1.2 million. Cochran forked over the full sum. Biden then paid $350,000 in cash to real estate developer Keith Stoltz for a 4.2-acre lakefront lot. Stoltz had paid that same amount five years earlier for the undeveloped property.

Stoltz told the Wilmington News Journal that "the residential real estate market was soft" at the time he sold the land to Biden. But "soft" for whom? Stoltz was a well-off businessman who didn't appear to be in such dire financial straits that he needed to unload the property quickly in a weak market.

Reporter Byron York looked at comparable properties in Biden's neighborhood and found three cases where homes in the area went "for a good deal less than their appraised value. In comparison, it appears Cochran simply paid Biden's full asking price."

Biden's office denied any sweetheart deals took place, but York noted that it appeared MBNA indirectly helped Cochran buy the Biden house through six-figure executive compensation funds listed as moving expenses and losses suffered on the sale of his previous home.

To be clear, no laws were broken. These arrangements were simply a continuation of Biden's decades-long, Beltway business-as-usual relationships with a deep-pocketed corporate benefactor -- which, by the way, later hired his son. Nice nepotism, if you can get it.

North Dakota Democrat Sen. Kent Conrad and Connecticut Democrat Sen. Chris Dodd made cozy arrangements with subprime sleaze lender Countrywide. Portfolio.com reported that Conrad "borrowed $1.07 million in 2004 to refinance his vacation home with a balcony and wraparound porch in Bethany Beach, Del., a block from the ocean."

Senate Banking Chair Dodd received two discounted loans in 2003 through Countrywide's VIP program. He borrowed $506,000 to refinance his elite townhouse in Washington, D.C., and $275,042 to refinance a home in East Haddam, Conn. Countrywide helpfully waived fractions of points on the loans. The lower interest rates could have saved Dodd a combined $75,000 during the life of the 30-year loans.

Dodd had known about the preferential treatment on his loans since 2003, yet continued to deny that he was treated like a VIP, refused to acknowledge wrongdoing and encouraged government-sponsored mortgage enterprises Fannie Mae and Freddie Mac to invest in Countrywide's risky loans.

Not content with two shady home deals, Dodd got in on a real estate scheme for an Irish cottage and nearly 10 acres of land with William Kessinger, a businessman tied to his close friend, insider trader Edward R. Downe Jr.

Downe had pleaded guilty to tax and securities law violations and was banned for life from the business. In 2001, Dodd helped Downe obtain one of the treasured presidential pardons on Bill Clinton's last day in office. A year after that, as Irish real estate prices went through the roof, Dodd purchased Kessinger's share of the estate at a discount. He failed to include the obvious quid-pro-quo gift on Senate disclosure forms: Help a crooked friend, reap a cut-rate real estate deal.

Prominent members of Team Obama benefited from similar special home deals. Politico.com noted that the Clintons secured a $1.35 million loan from Democrat pal and fundraiser Terry McAuliffe for their New York estate; Obama special envoy Richard Holbrooke snagged a sweetheart loan to refinance his Telluride, Colo., ski vacation home from the Countrywide VIP program; and Obama's close confidante and erstwhile vice presidential search committee panelist Jim Johnson accepted more than $7 million in below-market-rate loans from Countrywide.

Then there's President Barack Obama's own $1.7 million Chicago manse -- which was financed with a discounted mortgage from Northern Trust and infamously included a shady land swap with convicted felon donor/developer Tony Rezko. A report released by the Federal Election Commission in February 2009 underscored that the Obamas received reduced loan rates (saving $300 a month, or $108,000 over the life of a 30-year loan) because of their high-profile positions.

Northern Trust offered the super jumbo loan to the Obamas in anticipation of entering "long-term financial relationships" with the successful couple. The FEC refused to call the Obamas' mortgage deal an illegal corporate contribution, but it was an obvious act of favor-trading. Northern Trust employees had contributed $71,000 to Obama since 1990.

GOP candidates like Christine O'Donnell, who have weathered personal financial troubles, have a lot more in common with the 14 million Americans underwater on their mortgages than these privileged Beltway boys. Perhaps fat-cat Democrats in crony-funded houses should put down their stones.

http://townhall.com/columnists/MichelleM...uses/page/full/

[phkrause]

This tit for tat really doesn't do anyone any good. Just shows how stupid both parties are and those that support one side or the other without really looking at everything. Just curious why she didn't include some republicans here in Mass on how they got there homes etc. She can't do that because than people would actually think she had some morals. Which goes for those who write for the other side also. As I've said on many occasions neither side has a monopoly on brains, and those that write one sided no matter what, are even worse, because they know better.

[Guest]

So you're saying that because I support one side, that I'm stupid?

[phkrause]

So you're saying that because I support one side, that I'm stupid?

Did you miss the part where I said "the other without really looking at everything."? I'm guessing that you do?? Otherwise I have no alturnative but to say yes. But I do see a lot of just posting that implies that. As this article does. She mentions that only democrats do this, when in reality both sides do this! Where is the fairness in that article. If I were a republican I would not have cared for this article because it doesn't reflect the whole picture. Sorry to imply that you are, did not intend to. I do believe that even though we have never met we know each other better than that. Like I've said on many occasions politics seems to bring out the worst in each of us. That's why I have no love for it. Democrat and Republican politians are one and the same, there really is no difference,they just choose to see what the other is for and than they are against it, doesn't matter if its good or bad. So I'll leave it there, you can choose to accept what I meant whatever way to want. Just remember I choose friends based on other things than politics, politics just gets in the way of good friendships.

[doug yowell]

$1.07 million for a wrap around porch and a balcony?? Now ya got me feeling sorry for those guys! They got robbed!! I woulda done it for $900,000!!

[Guest]

Democrat and Republican politians are one and the same, there really is no difference they just choose to see what the other is for and than they are against it, doesn't matter if its good or bad.

This is where you're wrong. Nothing could be further from the truth. Especially now. I've seen you say this before, and I've heard others talk that way from time to time. They are generally people who have no real understanding of politics whatsoever. They say it because it's easy to say, and they think it makes them look like they know what they're talking about. Without having to learn anything, or actually be up on what's what in the real world of politics. Sure both sides can be crooked, and they are. But to just make a blanket statement like that, and say there is no difference between them, shows a lack of any real understanding of the issues at hand, and what is really taking place. There is a world of difference between them.

Also I've seen you decry politics before, and say that it brings out the worst in people, gets in the way of friendships, etc. etc. etc. And maybe that's true. I don't usually say anything about it. Although it seems to me that if that's what you really believe, that you would want to leave it alone at all cost.

But instead, you are a part of a political forum where you had to request to be allowed in. And you continue to participate, and comment. (although it is usually just the same comment, worded differently: "They're both the same")

I've never said anything about any of that. But when you start calling people stupid if they don't see it the same way you do, then I have to say something. And point out, that it's not the ones who really follow politics, that are stupid.

[Guest]

Really Doug? Just $900,000??

[doug yowell]

Really Doug? Just $900,000??

maybe even less if I were to employ "immigrant worders".

[Guest]

I see....