Sunday, October 16, 2011

The Fiscal Gap


It’s hard to ask a favor from an enemy. While President Obama and the Wall Street Mongols may not be enemies, they aren’t exactly friends either. You can’t publicly criticize their bank accounts one day and then ask for money the next. In the past four years on more than one occasion, President Obama has made negative mention to the bonuses and profits of Wall Street executives, while defending the administration’s program of tougher oversight and regulation. This has caused many of Obama’s financial wells from 2008 to dry up, reduce their giving, or find another candidate.  An example of this is Goldman Sachs, who in the 2008 campaign gave President Obama over $1 million, has only given him about $45,000 this year, while Romney has been able to raise about $350,000 from the same company.

According to the New York Times, Mitt Romney’s donations from some of Wall Street’s top sources have towered over President Obama’s in comparison. The fiscal gap signifies the growing alienation from President Obama and many high-ranking financial professionals. It also shows Romney’s tactics of aggressive persuasion have proved successful in wooing them to his side. This imbalance exists largely at investment banks and hedge funds, private equity firms and commercial banks, which according to a New York Times analysis, accounted for a large portion of the campaign contributions in 2008 election. That fiscal tower may prove to be a skyscraper, as growing income inequality, escalates President Obama’s criticism of the industry. Appearing to be in the lead, since this spring Romney has raised $1.5 million from firms like Morgan Stanley, Highbridge Capital Management, and Blackstone; leaving President Obama to trail him having just raised $270,000.

Using his platform to his advantage, Romney has raised money off his belief that Wall Street should be allowed to write its own rules again by repealing Wall Street reform. He is also pitching himself as the turnaround expert for an ailing national economy, personally by wooing major Wall Street donors, and senior financial executives who were poised to back Gov. Chris Christie -- had he opted for a White House bid --onto his team.

Down but not out.

Romney isn’t the only one on the lookout for new money. President Obama has also sought out some new recruits to join his team. Some of which are, Harvey Weinstein: the movie mogul, who has raised more than $500,000; Roger C. Altman: a prominent investment banker has raised more than $200,000; John E. Frank: a Microsoft executive, who has raised more than $500,000; and Amy Friedkin: a San Francisco philanthropist of Jewish causes and a former president of the American Israel Public Affairs Committee, who has raised more than $200,000 for the president.

The figures mentioned above don’t account for all Wall Street giving, or for the full force of each candidate’s robust network of Wall Street “bundlers,” -- wealthy individuals who raise money from friends, family members and business associates. Msnbc reports that President Obama continues to dominate Mr. Romney — and the rest of the Republican field — in overall fund-raising. He has raised close to $100 million so far this year for his campaign, three times more than Mr. Romney, as well as $65 million for the Democratic National Committee.

Perry raised $17 million during the quarter ending on Sept. 30. Romney raised a little over $14 million. Paul raised $8.3 million in contributions. Cain reported raising $2.8 million and having $1.3 million on hand, while Representative Michele Bachmann of Minnesota raised almost $4 million in the third quarter and spent nearly $6 million, ending with about $1.3 million in cash.

The other Republican candidates appeared to be lagging far behind. Rick Santorum, the former Pennsylvania senator, reported raising $704,000 during the three months ending Sept. 30 and had just $229,114 on hand. Jon M. Huntsman Jr., the former Utah governor, has $327,000 left in his campaign account and more than twice that in debt, his campaign said on Friday. Newt Gingrich, the former House speaker, raised $808,000 during the quarter ending Sept. 30 with just $353,417 in cash on hand.

Money helps to get the word out, it helps to show that your team is supporting you, but does it ensure your success? President Obama has the most, Romney is gaining on Wall Street, Cain is getting the Voters attention, and Perry is picking up the south. Many directions the race can go, but in the end there is only one republican candidate to go against President Obama, and ultimately there can only be one presidential candidate standing.

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