Do you know America's top politicians exit their office
with millions more than credible based on their salaries
and perhaps some patient investing? Do you know how they
achieve that? Nobody has directly and fully answered that
question until Throw Them All Out was published.
The book, freshly published on November 15, 2011, was written
by Peter Schweizer, a research fellow at the Hoover Institution,
Stanford University, and a consultant to the White House
Office of Presidential Speechwriting between 2008 to 2009.
In the light of Schweizer's investigation, one
of the biggest scandals in American politics is waiting
The full story of the inside
game in Washington shows how the permanent political
class enriches itself at the expense of the rest of us.
Insider trading is illegal on Wall Street, yet it
is routine among members of Congress. Normal individuals
cannot get in on IPOs at the asking price, but politicians
do so all the time. The Obama administration has
been able to funnel hundreds of millions of dollars to
its supporters, ensuring yet more campaign donations. An
entire class of investors now makes all of its profits
based on influence and access in Washington.
Peter Schweizer has doggedly researched through mountains
of financial records, tracking complicated deals and stock
trades back to the timing of briefings, votes on bills, and
every other point of leverage for politicians in Washington. The
result is a manifesto for revolution:
Political Class must go!
More details at Amozon.com
Citizen John (amazon.com):
When I go to the election booth, I don't see the option, "None
of the above," below the candidate names.
The `Permanent Political Class' makes rules for itself.
Members with no time to meet small business constituents
do not spare any trouble to legally enrich themselves through
earmarks, real estate deals, securities violations, trading
on inside information, self-dealing with stimulus funds and
literally every budget item.
DC is a profit center for them and all those that support
them in various capacities, as they use government to enforce
sophisticated pay-to-play and don't-make-no-waves rules.
There is little incentive for them to leave Washington, which
is one reason they became the permanent political class.
Schweizer cites popular officials that play the IPO (Initial
Public Offering) game. For example, he shows how Nancy
Pelosi, the 60th Speaker of the United States
House of Representatives with an estimated net worth of $58
million, bought 5,000 shares of V (Visa) at the privileged
IPO price $44. This trade showed a profit immediately and
the shares went up to about $88 in a matter of days. However,
Pelosi worked on major legislation that if it had not been
killed in the body she led, would have had a strong negative
affect on the price right at that time. The rest of us can't
do it because we're subject to strict conflict of
interest rules, unlike lawmakers. Plus, we're not
invited to participate in IPOs until after the price is run
According to US law, if you're an elected official
and you sit on an important committee, you are allowed
to trade on the information that comes to you or even results
from your committee-related decisions. It stands
to reason that if you're on the banking committee, you
probably trade bank stocks, playing it both long and short.
If you're a staffer, you may accumulate sensitive information
and sell it to hedge funds. A lot of careerists trade on
This book is a manual on ways to give money legally to elected
officials. One big story is how Congressman Spensor Bachus
used a private meeting with Fed Chair Bernanke and Treasury
Secretary Paulson. Bachus was in the role of Ranking Member
on the House Financial Services Committee. He used the dire
information presented to him in this meeting to bet heavily
that the market would go down, using option trades. Bachus,
working with Bernanke and Paulson from July 2008 to November
2008, scalped $50K out of the falling market. The book has
lots of war stories like that.
While Throw Them All Out is our wake up call, it is also
a potential training guide for future politicians. After
all, Congress is unlikely to change the substance of rules
that allow them to make a killing year on year. We should
not aspire to do what they do. This would land the rest of
us in prison and earn their contempt for us.
Hassan Z. Brockovich
According to author's earth-crushing investigation, the
permanent political class is in power in Washington, D.C.,
because average Americans are all just lazy, stupid and unmotivated,
while the political class is savvy, aggressive and very ambitious.
I could not agree more; after all, how can you explain that
the political class keeps lying to the average voter...yet
the average voter keeps sending them back every election
cycle to Washington, D.C., to screw them over some more?!?!?
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