August 17, 2007

John Edwards, Exploiter Of The Poor

John Edwards has spent plenty of campaign time talking about the Bush administration's callousness towards the victims of Hurricane Katrina. He's also hurled some invective at the latest economic villains for the Democrats, subprime lenders. According to the Wall Street Journal, Edwards knows more than he lets on about both:

As a presidential candidate, Democrat John Edwards has regularly attacked subprime lenders, particularly those that have filed foreclosure suits against victims of Hurricane Katrina. But as an investor, Mr. Edwards has ties to lenders foreclosing on Katrina victims.

The Wall Street Journal has identified 34 New Orleans homes whose owners have faced foreclosure suits from subprime-lending units of Fortress Investment Group LLC. Mr. Edwards has about $16 million invested in Fortress funds, according to a campaign aide who confirmed a more general Federal Election Commission report. Mr. Edwards worked for Fortress, a publicly held private-equity fund, from late 2005 through 2006.

Asked about the matter, Mr. Edwards yesterday pledged that he would personally provide financial assistance to New Orleanians who are facing foreclosure by Fortress-affiliated businesses or have lost their homes already. "I intend to help these people," the former North Carolina senator said.

Bear in mind that this is not a case of a blind-trust investment choice, like the silly meme regarding Mitt Romney and stem-cell research. It's not even about a personal investment choice supposedly made in ignorance. John Edwards worked for the owner of a subprime lender during 2005 and 2006, when Hurricane Katrina hit and the company initiated foreclosures on the victims. In fact, he made almost a half-million dollars advising Fortress while it purchased a second subprime lender during that period.

Nor did he cut all ties to Fortress after he stopped consulting for them. He invested half of his net worth in Fortress, according to the WSJ. Fortress employees have contributed $150,000 to his presidential campaign in the first two quarters of this year.

Edwards has conducted a "poverty tour" as part of his campaign this year, emphasizing his Two Americas theme. One of the stops was in Cleveland, where he walked a neighborhood particularly affected by foreclosures. He told reporters, "This is not complicated, this is wrong," as he walked the streets, but the WSJ did some checking afterwards-- and four of the foreclosures came from Fortress Investment lenders.

Apparently it's more complicated than Edwards knows.

Remember this the next time Edwards attacks "shameful lending practices". His own firm, the one who used his consulting to operate and acquire companies like Nationstar, conducts those same practices. Will Edwards return the $150,000 in contributions to Fortress managers who run these lenders? Will he return to that Cleveland neighborhood and apologize for his hypocritical posturing on their streets?

And will Edwards finally get seen for what he is -- an ambulance chaser, a poseur, and a fraud?

TrackBack

TrackBack URL for this entry:
http://www.captainsquartersblog.com/mt/tabhair.cgi/11559

Listed below are links to weblogs that reference John Edwards, Exploiter Of The Poor:

» John Edwards: Investor Extrordinaire Who Exploits The Poor from And Rightly So!
John Edwards: Many people know he’s a blowhard- a millionaire who pretends to be the MAN for the working class peoples of America. His campaign is all about the TWO AMERICA’S- which America does he live in though?? (WATERLOO, Iowa) — Six ... [Read More]

» Friday Finds from Sticky Notes
Mr. Edwards has ties to lenders foreclosing on Katrina victims. This is the company he worked in 2005-06. Interestingly, Fortress employees have collectively made up the largest class of political contributors to Mr. Edwards. [Read More]

» John Edwards Accidentally Made Millions from Katrina Abusing Subprime Lenders from Outside The Beltway | OTB
WSJ’s Christopher Cooper reports on what appears to be serious hypocrisy on John Edwards’ part: As a presidential candidate, Democrat John Edwards has regularly attacked subprime lenders, particularly those that have filed foreclosure suit... [Read More]

» John Edwards Foreclosing on One Side of the Two Americas from UrbanGrounds
Once an ambulance-chasing lawyer, always an ambulance-chasing lawyer. ... [Read More]

» Janus Edwards from bRight & Early
Janus, the Roman God of doors, is often depicted with two heads looking in op… ... [Read More]

» Edwards Found To Have Strong Ties To Lenders Foreclosing on Katrina Victims from Liberal Values
Many liberal writers will try to write off Ed’s comments, as well as the reports in The Wall Street Journal as a right wing attack. This is a right wing attack of the most dangerous sort–a valid attack. So far we are only seeing the tip of ... [Read More]

» Which America, John? from Nate Nelson
File this one under the “John Edwards is a great big hypocrite” category: apparently, he who has targeted subprime lenders for helping to create “two Americas” in which the so-called have’s have a lot and the so-called hav... [Read More]

» That smell? Why it’s John Edwards! from Neocon News
If you didn’t already know the John Edwards was about as genuine as a three dollar bill, among other things he has in common with them, here is another example from The Wall Street Journal: The Wall Street Journal has identified 34 New Orleans ho... [Read More]

Comments (27)

Posted by Marv | August 17, 2007 6:26 AM

It is clear that John the snake oil salesman deeply believes in "The Two Americas" - and, if elected, that he intends to keep it that way.

Posted by stackja1945 [TypeKey Profile Page] | August 17, 2007 6:27 AM

Since when has a Dem not been "an ambulance chaser, a poseur, and a fraud?"
Edwards continues a fine tradition.


Posted by MarkW | August 17, 2007 6:58 AM

will he be seen as "an ambulance chaser, a poseur, and a fraud?"

Not a chance. The MSM will continue to hide the truth about their favored candidates.

Posted by Jim | August 17, 2007 6:58 AM

Sure, sure, focus on the negatives, you rightwingnutjobs. When are you going to point out things like him having a spouse who appears to have as lovely and warm a personality as......Rosalyn Carter, or Terezza Kerry, or even the ever-likable first lady Mrs. "I don't stay home to bake no cookies" Clinton?

And show me a single candidate from the right who has hair that nice. Just one. You can't do it, can you. Or who has such a gift for hiring brilliant and talented bloggers to help in his campaign?

Or who have his taste in fine home design? Who better to speak to the issues of poverty and economic unfairness in this depression-riddled, starving children on every street corner, sweat-shop, oppressive nation, than a man who has experienced FIRST HAND, what it is like to live in the top 1/1000 of one percent in this country. See, your ignorant middle class rubes have NO IDEA how huge a chasm there is between those who are at the very top - wealthier than 99.99% of the rest of the country - and the starving exploited bottom 25%. He does. He can speak from personal experience. He understands. He can feel their pain. He can even channel it, just like he can do with babies who have suffered birth defects. Don't believe me - just ask those jurors, pal.

Posted by Bennett | August 17, 2007 7:25 AM

I like the part about how he's going to provide personal assistance to the defaulting borrowers. I wonder what that means exactly. He's going to pay off their loans with his own money? Or buy up the paper and rework the terms? Help them find more affordable housing? Have them move in to his place? Maybe someone needs to put together a caravan of all these Katrina victims he has now promised to help personally and they can show up by the busloads at his spread in North Carolina. Hey we heard you John, we're here for that help you promised us.

Posted by Rovin | August 17, 2007 8:06 AM

Maybe someone needs to put together a caravan of all these Katrina victims he has now promised to help personally and they can show up by the busloads at his spread in North Carolina. Hey we heard you John, we're here for that help you promised us.

C'mon Bennett, you gotta know those buss's aren't available until Blanco and Nagin install snorkels.

Posted by Gwedd | August 17, 2007 8:06 AM

Cap'n,

That isn't all that Fortress is known for. Fortress Investment Group bailed out Micheal Jackson after his last trial, and holds the paper on half of the Beatles catalog with Sony holding the other half.

Fortress gave Jackson so much cash (more than 100 million) that Jackson can never pay it back and it all comes due within a year. I believe it's around April of '08.

When and if Fortress calls in the note (and there is every reason to believe they intend to), Jackson stands to lose everything he has left, and anything he earns for the foreseable future.

Fortress will not only regain it's money, but it will end up with half of the beatles catalog, and thus be in a position to leverage Sony for royalties, since Sony owns the other half.

Considering the current financial state of the music industry, it is completely possible that Fortress could end up owning Sony, and thus the entire Beatles catalog, which would put them in a very enviable financial position, as the Beatles music has been one of the prime income streams for Sony since their investment in it.

Respects,

Posted by DaveP | August 17, 2007 8:07 AM

Edwards is trying to become the latest poverty pimp. Like those before him (Sharpton, Jackson...) he has to sing a tune and hope people follow him.

Edwards' problem is that he has no Street Cred when it comes to the topic. White, black, hispanic or whomever, it does not matter.

Lots of American's grew/grow up poor and change their lives if they so desire. Many who have made the transformation are proud, honorable and want to share their success with others. This type of success is not even an entry-level qualification to be preseident.

Edwards is trying to turn pverty into a new-generation cottage industry and play the economic-race card.

And, how dare you challenge John John on his positions, success and compassion. If you fo challenge him, he will sick his wife on you. Dare not fight with 'Liz. You will be branded heartless and evil.. - A NEW VERSION OF THE JERSEY GIRLS ROUTINE ---


Posted by FedUp | August 17, 2007 8:11 AM

Oh, I hope JE sticks around... this campaign needs the comedy relief and a small thorn in Hilarity's side..

Posted by docjim505 | August 17, 2007 8:29 AM

And to think that Bush Classic was derided and ridiculed just because he didn't know the price of a loaf of bread...

Posted by TombZ | August 17, 2007 8:51 AM

Perfect.

Posted by jfm | August 17, 2007 9:04 AM

Once a shyster lawyer, always a shyster lawyer.

Posted by KendraWilder | August 17, 2007 9:10 AM

Actually, I hope that John Edwards gets the Democratic nomination. Would sure be a much easier, less expensive fight for the GOP nominee.

Posted by Scrapiron | August 17, 2007 9:24 AM

I don't pretend to understand how the hedge funds that have resulted in one of the greatest rip-offs (right up there with World Com) of the American people in history works, but I seem to remember another of the democrat leaders in the presidential race that managed to get her daughter a job (six figure starting salary + investments) right out of college. Doesn't she handle 'hedge' funds? Another democrat POTUS wannabe (AlGore-abge) was running around waving his arms in the air in the mid 90's hyping WorldCom. Funny how all of the investors lost their a** and AlGore-abge ended up a multi-millionaire. But they all care about the poor, they care so much they keep creating them.

Posted by unclesmrgol | August 17, 2007 9:59 AM

Gwedd,

Sadly, we can thank the Republicans (we have met the enemy and he is us) for reinstituting involuntary servitude -- it's now nearly impossible to declare bankruptcy and clear your debts. Jackson's debts will outlast his life.

However, it's interesting that this form of slavery now allows John Edwards to own Michael Jackson. One wonders what Edwards will do with his purchase?

Posted by rrk | August 17, 2007 10:08 AM

Edwards is a cartoon series in the making.

Posted by Mike M. | August 17, 2007 10:23 AM

America's biggest victims are the good doctors and hospitals who get bankrupted and destroyed by dirtbag shysters who convince uneducated southern juries that congenital birth defects are caused by doctors' mistakes.

Posted by Bob Smith | August 17, 2007 11:18 AM

Half his net worth is invested with a subprime lender? Don't be surprised if Edwards starts advocating for a taxpayer-financed bailout of homeowners, which is nothing more than a way to subsize lenders who make bad loans. Starting, of course, with John Edwards himself, who may be losing or have already lost millions and needs taxpayer dollars to make himself whole.

Posted by braindead | August 17, 2007 1:15 PM

How can you tell when a Lawyer is talking.......?

HIS LIPS ARE MOVING !!

With all due respect to the Captain, in Mr. Edwards case, this is not just a joke.

Posted by Jesus H.W. Vush | August 17, 2007 1:28 PM

why doesn't he give them some of his OWN millions?

hippocrit!!!

Posted by Eric | August 17, 2007 2:42 PM

I would really like to know the history of John Edwards’s charitable contributions. I would really like to know if he tithes. And I would like to know how many years prior to the election he has done so, if in fact he has done so.

I can't remember the actual numbers, but I was impressed to see that the Bush's actually give 10% to charity (this was disclosed on their income tax return.) It was exactly 10% -- a biblical amount.

In fact, I would like to know all of the candidates charitable contributions (excluding underwear.)

If in fact I find out that Edwards is walking the walk and doing his fair share – then I’ll shut up about him on this issue (and move on to the hair issue.)

Posted by AnonymousDrivel | August 17, 2007 4:20 PM

John Edwards - "The Most Dishonest Shell (or Shill) In Politics"

I think that would fit on a bumper sticker. The Edwards charicature would be funny if it wasn't so pathetic.

Posted by Dishman [TypeKey Profile Page] | August 17, 2007 7:53 PM

For a long time, Democrats have been creating "problems" so they can rail against them. John Edwards just shortens the loop. He is, in fact, a direct source of some of the problems he rails against.

Posted by burt | August 17, 2007 7:56 PM

"Will he return to that Cleveland neighborhood and apologize for his hypocritical posturing on their streets?"
NO.
"And will Edwards finally get seen for what he is -- an ambulance chaser, a poseur, and a fraud?"
ABSOLUTELY NOT.

Bad as this is, it is nothing compared to how he earned his fortune as a corrupt tort lawyer. He made his money by successfully suing obstetricians because they were practicing good medicine. He falsely alleged that failure to use cesareans had caused cerebral palsies in the newborns. This is not supported in the refereed medical literature. It is well recommended in the tort literature.

As one of the rightwingnutjobs, I say hats off to Jim.

Posted by jaeger51 | August 17, 2007 8:45 PM

One of the best all time TV comedies was Edwards against Cheney in the VP debate...Cheney was just tossing facts and analysis everywhere, sounding like the ultimate govt. professional & The Silky Pony let us all know, well, that he, well, cared about people, by looking soulfully into the camera. Good old Silky Pony is a walking advertisement for media bias.Between his total lack of experience & ideas, and his extremely questionable business life, if he wasn't bearing the magic "D" and happened to carry the shameful mark of "R", he'd have about as much chance of being a presidential candidate as the slowest of my pet cats.

Posted by patrick neid | August 17, 2007 10:33 PM

he continues to be what he has long been, a repugnant little man.

a delusional narcissist.

i can't wait for a ann coulter hit peice on this one...........

Posted by obladioblada | August 17, 2007 10:55 PM

"Asked about the matter, Mr. Edwards yesterday pledged that he would personally provide financial assistance to New Orleanians who are facing foreclosure by Fortress-affiliated businesses or have lost their homes already. "I intend to help these people," the former North Carolina senator said".

We so look forward to witnessing his personal financial assistance. What extraordinary beneficence, what noblesse oblige! Wonder how excited the New Orleaneans are about his personal bail-out commitment and how many personal billions he thinks are appropriate.

Also, heard about his "she-devil" attack on Coulter. Don't like her myself, but does he have the slightest idea how undignified/unpresidential his attack is? "Nyah, na, nyah, na, know you are, what am I?" This is a grown-up would-be-leader of the free world? Hard to say which sand-box spat will set him off next.

Post a comment