Research Briefing

Three Years Of Obamanomics Have Created Winners And Losers; No Surprise, The Winners All Have Connections To The Obama Campaign While The Losers Get Stuck Paying The Bill

WINNER:  OBAMA FUNDRAISERS

Solyndra

Solyndra Was Offered The First Recovery Act Loan Guarantee, Receiving $535 Million From Taxpayers In March 2009, And Went Bankrupt In August 2011. (Solyndra, “Solyndra Offered $535 Million Loan Guarantee By The U.S. Department Of Energy,” Press Release, 3/20/09; Joe Stephens And Carol Leonnig, “House Republicans Step Up Solyndra Investigation,” The Washington Post, 9/1/11; George Avalos, “Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers,” The San Jose Mercury News, 8/31/11)

“The Leading Investors In Solyndra Were Two Investment Funds With Ties To George B. Kaiser, A Major Campaign Fundraising ‘Bundler’ For Obama.” (Carol D. Leonning And Joe Stephens, “Solyndra Employees: Company Suffered From Mismanagement, Heavy Spending,” The Washington Post, 9/21/11)

• George Kaiser's Argonaut Ventures Is The “Single Largest Shareholder Of Solyndra.” “Kaiser's Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra's parent company, bankruptcy records filed Tuesday show.” (Ronnie Greene And Matthew Mosk, “Obama Officials Sat In On Solyndra Meetings,” iWatch And ABC News, 9/9/11)
• George Kaiser Bundled Between $50,000 And $100,000 For Obama’s 2008 Campaign. (Center For Responsive Politics, opensecrets.org, Accessed 9/9/11)

Steve Spinner Monitored The Energy Department’s “Green” Loan Guarantees. “Steve Spinner, who helped monitor the Energy Department's issuance of $25 billion in government loan guarantees to renewable energy projects, was one of Obama's top fundraisers in 2008 and is raising money for the president's 2012 reelection campaign.” (Matea Gold And Stuart Pfeifer, “Obama fundraiser linked to loan program that aided Solyndra,” Los Angeles Times, 9/16/11)

• Spinner Has Raised At Least $1 Million For Obama Between 2008 And 2012. (Center For Responsive Politics, Open Secrets,  Accessed 12/13/11)
• Spinner Was “Actively Involved” In Solyndra’s Loan Despite Promised To Recuse Himself from the Deal. “Emails released last week show that Spinner was actively involved in a $528 million federal loan for Solyndra Inc., despite pledging to recuse himself because his wife's law firm represented the company.” (Matthew Daly, “Solyndra Loan Figure Raises $500k For Obama,” The Associated Press, 10/14/11)

MF Global

President Obama: Jon Corzine Is “Our Wall Street Guy.” “The rollout also provided a showcase for Corzine, the former Goldman Sachs CEO whom Obama referred to as ‘our Wall Street guy’ at a meeting of Democratic governors in Chicago on Friday.” (Claire Heininger, “Corzine Profile Rises In Obama Camp,” The Star-Ledger (NJ), 6/23/08)

• President Obama: “Jon Corzine wasn't just the first governor to pass an economic recovery plan for his state; he was an ally with the Obama administration in helping us develop a national recovery plan.” (President Obama, “Remarks By The President At New Jersey Rally For Governor Jon Corzine,” Holmdel, NJ, 7/16/09)

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  • Watch Obama’s Comments Here

October 31^st: Jon Corzine’s Wall Street Firm, MF Global, Filed For Bankruptcy. “Broker-dealer MF Global, headed by former New Jersey governor and Goldman Sachs chairman John Corzine, has filed for bankruptcy protection, apparently because of holdings of European debt.” (“Broker-Dealer MF Global Files For Bankruptcy,” USA Today, 10/31/11)

• The Eighth Largest Bankruptcy In US History “Has Shaken Faith In The Markets.” “The case -- the eighth-largest bankruptcy in U.S. history -- has shaken faith in the markets and put business on hold for many owners of the roughly 38,000 securities and commodities trading accounts at the firm, from big-city traders to heartland farmers.” (James O’Toole, “The MF Global  Money Chase,” CNN Money, 12/6/11)

Up To $1.2 Billion Is Missing From Customers Of Jon Corzine’s Firm. “The court-appointed trustee overseeing MF Global's bankruptcy says up to $1.2 billion is missing from customer accounts, double what the firm had reported to regulators last month.”  (Marcy Gordon, “MF Global Trustee Says $1.2B Or More Missing,” The Associated Press, 11/21/11)

• “The Money May Be Gone Forever” If MF Global Used It To Cover Losses On Its Own “Risky Bets.”  “It is unclear what MF Global did with this money or whether it can be recovered. Investigators are checking whether MF Global used some of the cash to pay off its own debts, which means the money could be sitting in an account at another firm. But if the firm used it to cover losses on some of its risky bets, the money may be gone forever.” (Ben Protess, “MF Global Is Said To Have Used Customer Cash Improperly,” The New York Times, 11/17/11)

“MF Global Also Shows How This New Era Of Regulatory Power Puts A Premium On Political Connections.” (Editorial, “Mr. Corzine And His Regulators,” The Wall Street Journal, 12/1/11)

The CFTC Approved The “MF Global Rule” Which Would Bar Wall Street “From Using Client Funds To Buy Foreign Sovereign Debt.” “Federal regulators approved tougher constraints on Wall Street risk-taking on Monday, adopting the ‘MF Global rule,’ named after the collapsed brokerage firm that is believed to have improperly used hundreds of millions of dollars of customer money. The new rule will limit how the brokerage industry can invest customer money, largely barring firms from using client funds to buy foreign sovereign debt. It also prevents a complex transaction that allowed MF Global, in essence, to borrow money from its own customers.” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)

• The CFTC Proposed The Rule In October 2010, But “Met A Powerful Roadblock In Mr. Corzine.” “Mr. Gensler’s agency initially proposed the crackdown in October 2010, and neared a vote on the plan this summer. But at the time, the agency met a powerful roadblock in Mr. Corzine, former Democratic governor of New Jersey.” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)
• Corzine Launched An “Aggressive Lobbying Campaign” And Delayed The Rule From Taking Effect. “Mr. Corzine’s efforts culminated on July 20, as MF Global executives were on four different calls with the agency’s staff. Mr. Corzine personally participated in two of those calls. Ultimately, the aggressive lobbying campaign helped delay the proposal.” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)

Siga

Obama’s Department Of “Health And Human Services Awarded Siga A No-Bid Contract Worth Nearly $433 Million.” “In May 2011, Health and Human Services awarded Siga a no-bid contract worth nearly $433 million to develop and produce 1.7 million doses of an anti-viral smallpox drug called STS-246. The drug would augment the existing supply of smallpox vaccine now in U.S. control.” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)

The Price Per Dose Charged By Siga Is “Well Above” A Price That Was Considered To Be “Reasonable” By Government Specialists. “The contract calls for Siga to deliver 1.7 million doses of the drug for the nation's biodefense stockpile. The price of approximately $255 per dose is well above what the government's specialists had earlier said was reasonable, according to internal documents and interviews.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times, 11/13/11)

Siga’s Return On Investment For The Contract Is “An Overwhelming 180 Percent.” “But internal e-mails obtained exclusively by CNN show a contracting officer assigned to manage price negotiations between HHS and Siga was alarmed at the cost. Siga's return on investment, one e-mail said, was ‘an overwhelming 180 per cent.’” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)

When HHS Officials Said Siga’s Profit Was “Outrageous,” Especially Considering Taxpayers Helped Fund The Development Of The Drug, Siga’s CEO Asked For “A More Senior Official” To Replace HHS’s Negotiator. “The e-mail went on to say that margin ‘must be cut in half at a minimum’ and later added: ‘I know you won't find a CO (Contracting Officer) in government who would sign a 3-digit profit percentage.’ In reply, another HHS official, a doctor, agreed. ‘Fully concur that 180 per cent is outrageous,’ the doctor said in an answer. Moreover, because taxpayer dollars had been used to fund research and development of the drug, ‘We should get a major discount given our support of front-end development,’ the e-mail states. A few weeks later, the CEO of Siga, Dr. Eric A. Rose, wrote to HHS, saying ‘it was clear that we were at an impasse in negotiations’ and urging government officials to remove the existing contracting officer and replace him ‘with a more senior official.’” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)

• The Assistant Secretary At HHS Sided With Siga And “Shortly Thereafter The Contract Was Signed.” “The assistant secretary for preparedness and response, Nicole Lurie, agreed. In a letter to Rose, she told him she had instructed her officials ‘to appoint our most senior procurement official as the final authority for this procurement.’ Shortly thereafter, the contract was signed.” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)

Ronald Perelman Is The “Controlling Shareholder Of Siga,” A “Longtime Democratic Party Activist And Fundraiser,” And “A Particular Friend Of The Obama White House.” “Ronald Perelman is controlling shareholder of Siga Technologies and a longtime Democratic Party activist and fundraiser.  He's also a large contributor to Republicans, but has been a particular friend of the Obama White House.” (David Fitzpatrick and Drew Griffin, “E-Mails Questioned Huge Contract For Firm With Ties To Obama Administration,” CNN, 12/8/11)

• Andrew Stern, The Former President Of The SEIU - A “Wellspring Of Campaign Money” - Is On Siga’s Board. “In June 2010, Siga further heightened its presence in Washington by naming to its board Andrew Stern, former head of the Service Employees International Union and a frequent visitor to the Obama White House. The union is a wellspring of campaign money and volunteers for Democratic candidates.” (Dave Willman, “Cost, Need Questioned In $433-Million Smallpox Drug Deal,” Los Angeles Times, 11/13/11)

FLASHBACK: In 2008, Obama Promised To End “No-Bid Contracts Once And For All.” OBAMA:  "And I will finally end the abuse of no-bid contracts once and for all - the days of sweetheart deals for Halliburton will be over when I'm in the White House.” (Barack Obama, Remarks in La Crosse, Wisconsin, 10/1/08)

• Watch Obama Promise To End No-Bid Contracts

WINNER: OBAMA’S LIBERAL BASE

Environmentalists

Obama Has Threatened To Veto A Payroll Tax Cut Extension If It Forces Him To Reach A Decision On the Keystone Pipeline Before Election Day. “President Barack Obama twice in two days has threatened to ‘reject’ a plan extending payroll tax cuts and unemployment insurance if it includes Republican language to speed up a decision on the Keystone pipeline.” (Darren Goode, “Dems’ Keystone-Payroll Tax Dilemma,” Politico, 12/8/11)

The Keystone Pipeline Will Create 20,000 Jobs. “TransCanada’s initial estimate of 20,000 - which it said includes 13,000 direct construction jobs and 7,000 jobs among supply manufacturers - has been widely quoted by lawmakers and presidential candidates.” (Juliet Eilperin and Steven Mufson, “Keystone Pipeline Battle Heating Up,” The Washington Post, 11/6/11)

Obama Put The Pipeline Decision Off Until After The Election “Fearing Further Alienation” Of Key Voter Blocks. “The administration had in recent days been exploring ways to put off the decision until after the presidential election, fearing further alienation of environmental and health advocates who consider the pipeline decision a test of the Obama administration’s commitment to clean energy and air quality.” (John M. Broder and Dan Frosch, “U.S.  Delays Decision On Pipeline Until After Election,” The New York Times, 11/10/11)

Obama Delayed Making A Decision On The Keystone XL Pipeline Until 2013. “The Obama administration on Thursday said it was delaying a decision on the contested Keystone XL pipeline while it studies an alternate route through Nebraska, effectively pushing any action well past the 2012 election and into 2013.” (John M. Broder and Dan Frosch, “U.S.  Delays Decision On Pipeline Until After Election,” The New York Times, 11/10/11)

• The Pipeline Put Obama In A “Political Vise.” “The proposed project by a Canadian pipeline company had put President Obama in a political vise, squeezed between the demand for secure energy sources and the thousands of jobs the project will bring, and the loud opposition of environmental advocates who have threatened to withhold electoral support next year if he approves it.” (John M. Broder and Dan Frosch, “U.S.  Delays Decision On Pipeline Until After Election,” The New York Times, 11/10/11)

Unions

“Since Taking Office, Obama Has Reshaped The NLRB, Which Enforces Labor Law, Moving It To A More Pro-Union Stance After It Sided With Employers For Years Under President George W. Bush.” (Michael A Fletcher, “Boeing, Union Reach Tentative Deal To End Labor Dispute,” The Washington Post, 12/1/11)

The NLRB Filed Suit Against Boeing For Opening A Manufacturing Facility In Non-Union South Carolina. “Solomon filed the case earlier this year alleging that Boeing violated labor laws by opening the production line in South Carolina, rather than Washington state. Responding to a complaint from the union, the NLRB alleged that Boeing was punishing unionized workers in Washington state for past strikes at the company’s West Coast operations.” (Michael A. Fletcher, “Boeing, Union Reach Tentative Deal To End Labor Dispute,” The Washington Post, 12/1/11)

Boeing Had “Already Poured Billions Into The Facilities And Have Hired 1,000 Workers.” “Boeing, a vital U.S. company, wants to build a plant in South Carolina and bring good-paying manufacturing jobs to the state. They've already poured billions into the facilities and have hired 1,000 workers. But the NLRB filed a lawsuit last month to force Boeing back to Washington state, where workers would be represented by a union.” (Editorial, “Killing Jobs In South Carolina,” The Denver Post, 5/2/11)

The Washington Post: “The Allegation That The Company ‘Transferred’ Jobs Out Of State Is Unconvincing Because The Jobs In South Carolina Are New.” (Editorial, “Flight Risk For Boeing,” The Washington Post, 6/19/11)

• Las Vegas Review-Journal: “The Complaint Is But Another Example Of This Administration's Open Frontal Assault On Successful Businesses And The Free Market.” (Editorial, “Rewarding Strikes,” Las Vegas Review-Journal, 4/25/11)

The NLRB Dropped The Suit Against Boeing After Labor Reached A Favorable Agreement With Boeing. “The NLRB and the unions had accused Boeing of building the South Carolina plant in order to avoid the unionization of workers. But the machinists union, which made the initial complaint, asked that it be withdrawn after ratifying a four-year contract extension with Boeing on Wednesday.” (David Jackson, “Obama Pleased With Boeing/Labor Settlement,” USA Today, 12/9/11)

• Boeing Agreed To “Substantial Raises” And “Unusual Job Security Provisions.” “The N.L.R.B.’s acting general counsel, Lafe Solomon, said the labor board had decided to end the case after the machinists’ union — which originally asked for the case to be brought — urged the board on Thursday to withdraw it. On Wednesday night, the union announced that 74 percent of its 31,000 Boeing workers in Washington State had voted to ratify a four-year contract extension that includes substantial raises, unusual job security provisions and a commitment by Boeing to expand aircraft production in the Puget Sound area.” (Steve Greenhouse, “Labor Board Drops Case Against Boeing,” The New York Times, 12/9/11)

WINNERS: THE STATES OBAMA NEEDS FOR 2012

The 2012 Battleground States Of New Hampshire, Nevada, Iowa And Wisconsin Are Among Seven States That Have Received A Waiver From ObamaCare. “To date, HHS has granted waivers to seven states: Maine, New Hampshire, Kentucky, Nevada, Iowa, Georgia and Wisconsin. The department has denied them to Delaware and North Dakota."  (Julian Pecquet, “Obama Administration Rejects Republican States’ Health Law Waiver Requests,” The Hill’s “Health Watch,” 11/28/11)

No Battleground State Has Been Denied An ObamaCare Waiver. “The Department of Health and Human Services has denied Indiana’s and Louisiana’s requests for temporary relief from health reform’s medical loss ratio requirements, making them the third and fourth states to have their applications rejected outright. The states join North Dakota and Delaware as those rebuffed in waiver requests.” (Jason Milman, “Indiana, Louisiana Health Waivers Nixed,” Politico, 11/28/11)

• “Michigan, Which Has Backed The Democratic Candidate In The Last Five Presidential Elections, Is Among The 12 Swing States Likely To Determine The Outcome Next Year. The Others Are Florida, North Carolina And Virginia In The South; Colorado, Nevada And New Mexico In The Mountain West; Iowa, Ohio And Wisconsin In The Midwest; And New Hampshire And Pennsylvania In The Northeast.” (Susan Page, “Swing States Poll: Obama’s Path To 2^nd Term An Uphill Climb,” USA Today, 11/5/11)

Currently, The Obama Administration Is Reviewing Waiver Requests From Six States Of Which Three Are Considered Battleground States. “The department is currently reviewing applications from six other states: Florida, Kansas, Michigan, Texas, Oklahoma and North Carolina.” (Julian Pecquet, “Obama Administration Rejects Republican States’ Health Law Waiver Requests,” The Hill’s “Health Watch,” 11/28/11)

LOSER: THE AMERICAN PEOPLE

Obama’s Failed Economic Policies Have Resulted In Millions Of Unemployed Americans

Since President Obama Took Office The Nation Has Lost 1.9 Million Jobs And The Unemployment Rate Has Increased From 7.8 Percent To 8.6 Percent. (Bureau of Labor Statistics, Accessed 12/12/11)

• Since Obama Took Office, There Are 1.3 Million More Unemployed Americans And The Average Duration Of Unemployment Has More Than Doubled From 19.9 Weeks To 40.9 Weeks. (Bureau Of Labor Statistics, Accessed 12/7/11)
• 5.7 Million Americans Are Unemployed 27 Weeks Or Longer And 8.5 Million Americans Are Working Part-Time For Economic Reasons. (Bureau of Labor Statistics, Accessed 12/12/11)

“Since The Recession Ended, Job Growth Has Been Even More Anemic Under Obama—Just 40,500 Jobs A Month.” “Obama’s claim of the ‘slowest job growth,’ in fact, includes the loss of jobs under his administration. The White House provided as evidence a report on a New York Times blog that was based on Gross Domestic Product data through 2010, or the first two years of Obama’s administration. The White House also cited a Center on American Progress report on job growth through 2007, which showed monthly job growth of 68,000 jobs during the Bush business cycle. But, since the recession ended, job growth has been even more anemic under Obama—just 40,500 jobs a month, according to the Bureau of Labor Statistics.” (Glenn Kessler, “Obama’s Kansas Speech: Some Suspect Facts,” The Washington Post’s “The Fact Checker,” 12/6/11)

Leading To Drastic Increases In Poverty, Homelessness And Food Stamp Usage

Since President Obama Took Office, 6.3 Million Americans Have Fallen Into Poverty. (Press Release, “Income, Poverty And Health Insurance Coverage In The United States: 2010,” U.S. Census Bureau, 9/13/11)

• In 2010, The Number Of Americans Living In Poverty (46.2 Million) Reached The Highest Level On Record. (Press Release, “Income, Poverty And Health Insurance Coverage In The United States: 2010,” U.S. Census Bureau, 9/13/11)

There Are 13.8 Million More Americans On Food Stamps Than Since Obama Took Office, An Increase Of 43.3 Percent. (Supplemental Nutrition Program, Department Of Agriculture, 10/31/11)

One In 45 Children, Or 1.6 Million, Is Homeless. “One in 45 children in the USA — 1.6 million children — were living on the street, in homeless shelters or motels, or doubled up with other families last year, according to the National Center on Family Homelessness. The numbers represent a 33% increase from 2007, when there were 1.2 million homeless children, according to a report the center is releasing Tuesday.” (Marisol Bello, “Report: Child Homelessness Up In 33% In 3 Years,” USA Today, 12/13/11)