It's a MAD, MAD World

The Daily Enron ^ | 7/12/2002

[Willie Green]

For education and discussion only. Not for commercial use.

Foundation of Bush's Fortune Questioned
1991 SEC Memo Surfaces, Bush Not Cooperative

A new GOP/White House strategy went into effect today and it takes its tactics from the old Cold War - MAD (Mutually Assured Destruction). It worked to keep Soviet nukes holstered and it was Democrats who they hope to similarly intimidate.

"GOP leaders warned us that if we dare use this stuff against them they would slam us with Global Crossing," a Democratic Congressional aide told us weeks ago.

Those missiles have been launched. Indignant cries of "You should talk!" filled the Capitol today as well as our in-box. "What about Global Crossing? Huh, huh??" and "And Terry McAuliffe... Huh, what about that stuff?"

Okay, You guys want to talk about Terry McAuliffe and Global Crossing? Fine. Let's talk. There's interesting stuff there to be sure. But, then let's talk about the Texas Rangers. The two deals have a lot in common.

McAuliffe, now head of the Democratic National Committee, invested $100,000 in Global Crossing when the company was just forming. In 2000 he sold his Global stock for around $18 million. Yikes. A killing to be sure.

McAuliffe did not hold a position on Global's board, or in the executive suite, and he sold his stock two years before any hint of trouble. His sale was public.

Anyway, the implication now is that anyone who makes a great return on their investment must have known something the rest of us didn't know at the time. Well, maybe he did. Maybe he didn't. Investigations are underway, so we should find out at some point.

Now, to the Texas Rangers. I was doing research about the "money" Bush used to buy the Texas Rangers. But I had to stop, because "money" would be entirely the wrong term. Actually, if you trace the source of the funds Bush used to purchase the team, you discover he did not have a cent of his own money involved.

Here we go… let's follow the money and see how Bush parlayed zero into a fortune. In 1986 - Bush "sells" his bankrupt Spectrum 7 oil company to Harken. Harken does not give him cash but rather $600,000 worth of Harken stock. It is that stock, and few more shares he acquired with company loans he sells in 1989. He gets $848,000. That money went in 1990 to pay off some bills and the $600,000 bank loan he used to buy the ball team.

When the team was later sold, Bush pocketed $14.9 million. Yowzer! Not bad. At least we can calculate McAuliffe's return on his $100,000 Global Crossing investment, but how do we calculate Bush's return? A $15 million return from zero? We all should be so lucky.

So there you are. Two interesting cases, don't you agree? All we can hope is that the SEC and Department of Justice show as much curiosity about Harken (and Halliburton) as they have over Global Crossing.

Oh, and they might want to get cracking on it, because now it's voters who are about to get MAD.

[Fred Mertz]

A $15 million return from zero? We all should be so lucky.

I thought it was because Poppy's friends helped out Dubya. I had no idea about this.

I'm sure the good people of Arlington, TX are grateful their taxes contributed to the future president of the United States.

[Fred Mertz]

I forgot to add, this is old news, nothing to see here.

[Texasforever]

rather $600,000 worth of Harken stock

Damn and all this time I thought that stock was a financial instrument.

[Fred Mertz]

This title stinks.

Should be: "Bush does Arlington"

[sinkspur]

When the team was later sold, Bush pocketed $14.9 million. Yowzer! Not bad. At least we can calculate McAuliffe's return on his $100,000 Global Crossing investment, but how do we calculate Bush's return? A $15 million return from zero? We all should be so lucky.

Bush put up $600,000 to get $14.9. McAuliffe put up $100,000, to get $18 million.

You figure out who made more.

This reads like something from the ONION.

[BOBTHENAILER]

Thats an interesting website you posted from.

[Texasforever]

Willie I am ashamed of you. This is from your sources website. It is the same bunch headed by Carvile that are running DNC atack ads. You are using the DNC to trash Bush.

American Family Voices was founded in 2000 to be a strong voice for middle and low income families on economic, health care, and consumer issues. Since our founding, we have educated the public and pushed for legislation on a number of vital issues to make American families more secure, including:

• Protection for nursing home residents
  
  
• Prescription drug coverage for seniors, and price controls in those drugs for all consumers
  
  
• An HMO Bill of Rights
  
  
• Federal tax and budget policy that is fair to low and middle class tax payers
  
  
• Protections for pension and retirement funds
  
  
• Policies that will stop the abuses that led to the Enron scandal

We are funded by our individual members around the country, by the small businesses we work with, and by organizational members including consumer groups, civil rights groups, and labor unions.

[Willie Green]

This title stinks.

Yeah, I was thinking about doing one of those "My Title" thingys, but I don't think that's appropriate posting protocol.

[sinkspur]

Thats an interesting website you posted from.

It's a DNC website he posted from; the originators don't have the balls to say so.

[Texasforever]

This is as low as anything I have seen a freeper do around here.

[Fred Mertz]

It was my suggestion, so there.

[sinkspur]

This is as low as anything I have seen a freeper do around here.

This is par for the course for Bush haters.

Fred Mertz, rdavis84, Willie Green, Thomas Jefferson, gunshy...those are just a few who troll websites to put stuff like this on FR.

Most of these threads go out about 30 posts, composed mostly of fellow travelers, then die.

[SamAdams76]

Bankrupt companies are sold all the time. In fact, there are people who make livings buying bankrupt companies and selling off the assets. So Bush sells his company for $600,000 in stock and turns it into $14.9 million. Happens all the time. If you bought $100,000 in Microsoft stock in 1986, you'd have $48 million today.

Damn! If only I could find a time machine.

[BOBTHENAILER]

It's a DNC website he posted from; the originators don't have the balls to say so.

No shucking fit! Interesting, was meant to be: tongue-in-cheek, like all rats usually are (Barney Frank).

[Texasforever]

It was my suggestion, so there.

What, to post this trash? Fred tell me it ain't so. I know you do not support Bush but to use the DNC and Carville in particular is beyond the pale.

[Friedrich Hayek]

Someone posted an interview with the author of the 1991 memo the other day. She said her superiors at the SEC were extremely disappointed when she discovered that there was absolutely nothing improper about the transaction. It was all fair and above board.

But you already knew that.

[Fred Mertz]

It's not polite to talk behind FReepers' backs.

[Willie Green]

It is the same bunch headed by Carvile that are running DNC atack ads. You are using the DNC to trash Bush.

Ya gotta know what the enemy is saying in order to refute them.

In this particular case, I don't particularly care about cronie-ism, although it's probably there.

I am, however, deeply opposed to "sports pork" tax subsidies of professional sports stadiums. The presence of professional sports team in a community should be a source of tax revenue, NOT a tax BURDEN like these pampered millionaire extort from the community through their political connections.

There are far more important priorities for communities to spend their taxes on: roads, schools, police and fire departments, water supply, sewage treatment, mass transportation, etc, etc. etc.

Sports stadia oughta be at the absolute bottom of the list.
No, they shouldn't even be on the list. Let the team owners and players pay for the dang things themselves.

If this coincides with Dubya's Harken dealings that the Dems are yapping about, that's his problem, not mine. IMHO, legal or not, he's caught red-handed porking out at the feed trough at taxpayers expense.

[LurkerNoMore!]

Fred, personally I hate these stadium deals. Had I lived in Arlington, I probably would have voted against the stadium tax. But guess what? The citizens of Arlington voted FOR it.

Arlington is a suburb right between Dallas and Ft. Worth. It is the home of numerous amusement parks and is a huge tourist attraction. The Ballpark is quite an asset, even if the team is not. :-(