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The Insider

June 10, 2008 9:36 AM

That's the problem with bringing a Washington, DC, insider on board. They're sometimes covered with the goop from the insides of Washington.

What's the big deal about Obama campaign fundraiser/Vice President selection committee member Jim Johnson getting $7 million in loans from Countrywide Financial Corp.? (As the Wall Street Journal reported Saturday and the New York Sun's Josh Gerstein followed up on.).

Mortgages with rates below market averages, including "a $5 million home equity line of credit against a house in Ketchum, Idaho, a 5.25% loan of $1.3 million for a home in Palm Desert, Calif., and a 3.875% loan of $971,650 for a home in Washington, D.C." Mortgages set up through an informal program for friends of the company's CEO, Angelo Mozilo.

The problem is, Obama critics say, perception and hypocrisy. Obama had railed against Countrywide and Mozilo, and his campaign had impugned Sen. Hillary Clinton, D-NY, for taking money from Countrywide lobbyists and for allowing a senior campaign adviser to simultaneously do work for Countrywide.

**

Campaigning in Pennsylvania in March, Sen. Barack Obama, D-Illinois, assailed mortgage giant Countrywide Financial Corp., for embodying the economic and political culture dominated by corporate lobbyists and insiders.

"Countrywide Financial," Obama said. (Watch HERE.) "This is a company that is as responsible as any firm in the country for the housing crisis we're facing today. When Countrywide Financial was sold a few months ago, its top two executives got a combined $19 million. These are the folks who are responsible for infecting the economy and helping to create a home foreclosure crisis….They get a $19 million bonus while people are at risk of losing their home. What's wrong with this picture?"

("They" are Mozilo and the president of Countrywide, David Sambol.)

Around that time the Obama campaign also criticized Clinton for affiliations with Countrywide.

In the Washington Post: "Obama aides also said Clinton is in no position to stiffen oversight after taking contributions from mortgage industry lobbyists, including funds from representatives of Countrywide, which has been at the center of the mortgage meltdown. 'If we're really going to crack down on the practices that caused the credit and housing crises, we're going to need a leader who doesn't owe these industries any favors,' campaign manager David Plouffe said."

On MSNBC, senior Obama strategist David Axelrod criticized how senior Clinton strategist Mark Penn had consulted for Countrywide.  "She's stuck him with him through the revelation that his firm was working for Blackwater and working for Countrywide," Ax said (watch HERE.) "And, you know, so, it’s kind of stunning. Remember that the embassy said they weren't sure whether he was there as a representative of his firm or a representative of Senator Clinton. I mean, I think there are issues associated with this. I'm not - you (Keith Olbermann) can use the word hypocrisy, but there are certainly questions that arise from this."

**

Yesterday McCain told Fox News that the presence of Johnson on the Obama campaign "suggests a bit of a contradiction talking about how his campaign is going to be not associated with people like that. Clearly he is very much associated with that."

Shot back the Obama campaign, through spox Tommy Vietor, "It’s the height of hypocrisy for the McCain campaign to try and make this an issue when John Green, one of John McCain’s top advisors, lobbied for Ameriquest, which was one of the nation’s largest subprime lenders and a key player in the mortgage crisis.  As President, Senator Obama will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis—the kind of change that works for the American people.”

The Obama campaign through talking points first reported at Mark Halperin's The Page call this story "overblown and irrelevant...This an overblown story about what appear to be completely above-board transactions. The Wall Street Journal even admits that they don’t have a story-noting that it’s 'impossible' to know the factors that went into these arrangements."

(Note: the Wall Street Journal admits no such thing.)

Continue the talking points: "Americans know that we face a critical choice in this race-and isn’t about the terms of an outside advisor’s loans. This race is about leadership, and which candidate will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis. Barack Obama has offered a real solution to the housing crisis-John McCain hasn’t."

- jpt

June 10, 2008 | Permalink | Share | User Comments (31)

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WHY WHhhhhhhyyyyyyyy Does Barack Obama keep having such BAD TERRIBLE judgment with picking friends...

Rev. Wright
Pleger
Ayers
Rezko
And now Jim Johnson added to the long long list.

WHY????

Can we PLEASE have someone else to elect... For the sake & safety of The United America.

This bad naive Judgment only further proves why Barack Obama wants to talk to people like Ahmadinejad.

How can people keep voting for this kind of stuff, What is wrong with their brains and their common sense, why are they unable to notice a scandal? Does it have to blow up in their face first?

Open your eyes & wake up America, please.

Posted by: Justice | Jun 11, 2008 3:51:03 PM

I don't understand the whole issue. Why are the mortgage companies to blame? The fault is with the home owners that took out mortgages they could not afford and then defaulted. Another case of greed, not corporate, but individual.

Posted by: Jerry Blakeslee | Jun 10, 2008 10:46:47 PM

John McCains words and deeds of now and the past form the rope that he holds high over his head in one hand are his sword in the other hand. Behold, I will send.......For without...Rev.22.15

Posted by: little green frog | Jun 10, 2008 1:48:12 PM

You can keep trying, but this just isn't a scandal. The man got loans from a bad company. He doesn't work for Countrywide, lobby for them, or defend them. He's a client. Doing this gotcha thing with ever single minute thing that happens is ridiculous.

Posted by: Cj | Jun 10, 2008 1:35:28 PM

Obama has been for a long time the choice of the Democratic leadership.....they follow the money not ideals...see "pork barrel" for explanation.

Posted by: Jackie | Jun 10, 2008 12:53:21 PM

I get the feeling that people on this blog don't want ANY change.

Posted by: GetaLife | Jun 10, 2008 12:40:25 PM

No politician is clean. That's the nature of the business in this country.

Posted by: GetaLife | Jun 10, 2008 12:39:21 PM

HPBoston...You are so right!!!

Posted by: carolyn | Jun 10, 2008 12:32:09 PM

So what you are saying is that companies provide special offers to political friends of the company and vice versa at the expense of everyone else ?

My God, they are going to have to shut down Haliburton.

Posted by: ByeByeClintons | Jun 10, 2008 12:30:32 PM

The circumstances are not similar as some on this board are claiming. He hired the guy to vet potential VP candidates (not select the VP candidate). He's not hired on mortgage consulting. The worlds/purposes are far apart. The guy is not even being paid.

Posted by: Craig | Jun 10, 2008 11:51:48 AM

You can tell a lot about a person by the company he keeps. Obama is a complete nitwit! Ultra-libs, terrorists and uneducated youth define this guy really well!

Posted by: Soetoro No! | Jun 10, 2008 11:50:01 AM

Obama is not the Mr. Clean he claims he is. Some how whenever there's dirt on his side, he thinks it is totally acceptable. Under normal circumstances, yes, it is very silly to get a vetter for the vetter, however, he doggedly attacked Clinton for similar circumstances. That, to me, is the worst part. We all know Clinton was roaming around with lobbyists but we don't care. She never claimed she didn't. Obama claims he has a perfect record on this sort of thing but we find he doesn't. Hypocrisy much?

Posted by: Rachel | Jun 10, 2008 11:37:06 AM

ngemason,

I am smart enough to see a con man with a big smile, a big suit, and a small political record for trying to be president. no more town hall meetings for obama, we cannot take it.

give obama a big rally, like his mentors
to get the people all emotional and crazy.

obama can say nothing better than anyone in politics. and look good doing it too.

Posted by: andjustice for all | Jun 10, 2008 11:34:13 AM

There are two words that I think of when I think Obama: brilliant marketing.
How else could a product that is so little known and has so little track record go to to the top of the charts. This really has been perhaps the greatest political marketing job in American history.

Posted by: hopesprings52 | Jun 10, 2008 11:29:34 AM

Yeah with this...the "terrorist fist pump" he stole from charlie Sheen and Michael Jordan...

the gas tax and the picture of Hillary and John on the back of the boat looking like retirees riding the Maiden of the Mist at Niagara Falls...

yeah McCain must surely win...

oy

is this going to be a blow out.

somebody needs to tell John not to look like he is in pain every time he speaks now.

I don't think I can watch anymore...seriously and the words coming out of his mouth...I am starting to be in pain.

Posted by: dl | Jun 10, 2008 11:10:54 AM

this is a made up story...

the guy, you would guess, would have an unbelievable credit rating and it is about the points... duh...

anyone (even on the republican side said this is a non-issue and it looks bad to create it as one)

especially with mcCain's LEAD strategists having seedier deals and his campaign "loans"...

I thonk most people would stay away from playing old time politics with a guy that is off to the side and one issue out of all the corporations that he deals with...and this issue may be because this guy if incredibly smart and financially savvy and has a good financial standing...

this is stupid.

another distraction from the fact that McCain loses on all of these issues...and the economy... and the war issue.

straws...

Posted by: dl | Jun 10, 2008 11:06:15 AM

so this guys has loans with a company that gives loans, he has collateral for those loans, and clearly he has a high level of income and credit rating. How does that make him a lobbyist for the company? This is the rich man's life, they have other rich friends in positions of power that give them special deals. Where in the story does it show that this guy is lobbying for Countrywide?

Posted by: Louis | Jun 10, 2008 10:58:52 AM

I HOPE to God it is not to late to rid our selves of the worst candidate the DNC has shoved down our throats.

His CHANGE is just the usual flip flop,dirty politician, lying his way to the WH with all the sewer stench on him!
We could get stuck with him for 8 FREAKIN YEARS!
At least McCain will barely make the 4 and wait till we see who they get as VP to prop up that RNC joke, who I will vote for anyway.
4 years of John is less dangerous than 8 years of the BO.

Posted by: HP Boston | Jun 10, 2008 10:19:50 AM

jpt,

i hope you will be the hero of the day,
and help put some legs to this impeachment of bush.
I think the citizens of the us have the will and desire to see this happen.
no matter what nancy "smiling,head nodding and doing nothing" pelosi says.

impeach bush

Posted by: andjustice for all | Jun 10, 2008 10:18:26 AM

thanks for the obama, no i can't moment

I knew that was more and more that would come out about this guy.
you don't have such a high rise, with not much to show for it, with out getting some dirt on you from somewhere.

It is so clear all the dem bigwigs wanted to do was to beat clinton.
at the expense of losing the white house.
sad.
and no i do not want sen. clinton on the vp spot. I hope she will be able to have enough sense to stay away from obama.
a

Posted by: andjustice for all | Jun 10, 2008 10:13:23 AM

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