What about Rezko? There is No There, There.

In a diary entitled "FACT CHECK: Obama and His Contributor Rezko," the diarist "truthteller," tries to make a case against Obama. I welcome this diary.  As an Obama supporter, I think this is a valid issue for investigation.

I think there is a natural tendency to assume that our preferred candidates are good people who can do no wrong.  I find it extremely annoying when HRC and JE supporters reject, out of hand, any criticism of their candidate. As an Obama supporter, I want to weigh the validity of any charges against my candidate.

All this being said, what does the evidence actually suggest? Truthteller's diary appears very thorough, and I am sure it took a lot of work (no comment as to the source of that work).  But in the end, it is nothing more than an "innuendo" and "guilt by association" attack.

Let's go through this, point-by-point:

What is Obama actually accused of doing?

1) Obama is accused of having a key contributor under indictment in an alleged kickback scheme that does not involve Obama;

Response: Yes, Rezko is a power broker who has contributed to many politicians of both parties. Rezko has been indicted, he has not been convicted.  According to the Chicago Magazine piece referenced above, Rezko is alleged to be $5 million in debt.  He disputes this claim.  Perhaps the allegation is accurate.  Perhaps under great financial pressure, Rezko cooked up a plot to use his political connections with the Blagojevich administration to get kick-backs from public contracts.  

However, none of this is connected to Obama.  The alleged actions took place after Obama was already in the US Senate.  

The question of how much money Rezko raised is a matter of interpretation about who is connected to Rezko.  Rezko is a major power broker who knows a lot of people.  The authors of the Sun-Times story do not indicate their methodology for deciding who was "connected" to Rezko.  Until someone does a thorough itemized list of names and dates, the discrepancy between Obama's estimate and the reporters estimate is not all that sinister.  Since the first Sun-Times piece and the second Obama did review his records and concluded that more contributions were connected to Rezko, again the contributions were passed on to charity.  Truthteller makes no mention of this fact.

2) Rezko is accused of being a slumlord.

Response:  This is far from clear.  It is clear that many of non-profit, low-income, housing projects he was involved in developing were not financially sustainable and that lack of funds led many of the projects into foreclosure over the past decade.  I have not seen any evidence that this was the result of Rezko diverting funds to his own use.  It appears that the costs of maintaining and heating these buildings was greater than anticipated and that over time the finances of the individual projects unravelled.

Again, no one has presented any real evidence as to why these projects fell into foreclosure.  It is certainly unfortunate that the tenants were left without heat, but it is not clear what happened or why.

3) Obama is accused of having written a letter in support of a housing project and service center for low-income seniors in his State Senate District;

Response:  This is a no-brainer.  The project is question is still serving its tenants and providing services to the neighborhood.  There is nothing wrong with a State Senator supporting a project that benefits his constituents.  There is nothing here.  

4) Obama is accused of having provided a one-month, unpaid internship to the son of a business associate of Rezko.

Response:  Whoop-de-do! This is an absurd allegation.  Is this "public corruption?" No, this is life in the real world.  Internships and low level jobs in the political arena are given to supporters and the children of supporters.

As an eighteen year old, I got my first full-time job in politics as a Page in the Oregon Legislature based on connections and having volunteered in the campaign of the returning Speaker of the House.  If this is "corrupt,"
then 90% of all politicians are corrupt.

5) Obama is accused of accepting a contribution to his Senate campaign from an associate of Rezko, which may have come from diverted consultants fees and Rezko is accused of reimbursing some one for a contribution to Obama's Senate campaign.  

Response:  There is no evidence that Obama knew anything about either of these incidents and the money in question has now been donated to charity.

The Bottom Line:  There is little if anything here.  Unless someone uncovers some quid-pro-quo, Obama has done nothing wrong.  

Is this just my opinion? No, this is the opinion of Patrick Fitzgerald the Federal Prosecutor and the very Sun Times story quoted in the attack post,

"The Illinois senator isn't accused of any wrongdoing. And there's no evidence Obama knew contributions to his 2004 U.S. Senate campaign came from schemes Rezko is accused of orchestrating.

The allegations against Rezko that involve Obama are contained in one paragraph of a 78-page document filed last month in which prosecutors outline their corruption and fraud case against Rezko,"

There you have it, one paragraph of a 78 page document, and there is no indication that Obama knew anything about it.

I would suggest that this dairy says more about the diarist than it does about Obama.  Rather than approaching the subject with an open mind, the diarist employs selective quotes and a pile of innuendo to try to make Obama look as bad as possible.  That is what this is really about.  Trying to make Obama look bad with a "guilt by association" attack.  It is a lot easier to throw this crap out, than it is to refute it.

I would go further, HRC's use of Rezko in last nights debate is clear evidence of her "ill intent."  This is a smear of convenience.  Throw it out there to create doubt and suspicion.  It says more about HRC and the "Clintonian/Rovian style" than it does about Obama.

We need to hold ourselves, and our candidates, to a higher standard.  Rezko is a legitimate topic of discussion, but it must be approached with honesty.  As Obama said about Bush and the AUMF, "From where I stand, the case has not been made."

In the short term, these types of attacks can be effective, but in the long run we are playing on the Republicans "home turf."
The more we engage in this kind of politics of fear and smear, the more we discredit the political process, the more we reduce participation, and the more we legitimate Republican smears of our candidates.

Let's do better.



Display:


Don't forget the house and the campaign cash (none / 0)

When will Obama admit all - ALL - of the money that he got, and when will he give it back?

What about that million dollar mansion made possible in part by Rezko's wheeling and dealing on the adjacent lot?


by dpANDREWS on Tue Jan 22, 2008 at 03:24:56 PM EST

Laughing at him, voting against him (none / 0)

Calling him a baby killer and commie and all the other childish names they use all of us.

People, the only good republican is a defeated Republican.


by dpANDREWS on Tue Jan 22, 2008 at 03:29:12 PM EST
[ Parent ]

says the poster who won't even ask his family to.. (none / 0)

vote democratic...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:50:13 AM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (none / 0)

Yeah, wake me up when one of his financial directors is indicted.


by Drummond on Tue Jan 22, 2008 at 03:30:56 PM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (none / 0)

Patrick Fitzgerald has been investigating Rezko for over a year.  Obama has been accused of no wrong doing.

In the 78 page document laying out the charges against Rezko, only one paragraph is about Obamaand he is not even mentioned by name.

You are trying to make stuff up.


by upper left on Tue Jan 22, 2008 at 03:37:44 PM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (2.00 / 1)

What about the fact that Obama lied about his relationship with Rezko last night during the debate? Is that made up too? 5 hours!??? Try 17 years.


by americanincanada on Tue Jan 22, 2008 at 03:40:49 PM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (none / 0)

Another distortion.  Please give the full quote of what you say was Obama's lie.


by converse on Tue Jan 22, 2008 at 03:51:11 PM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (none / 0)

Obama said he did about 5 hours of billable legal work on the LLC that Rezko formed with the Church group.  There is no evidence to contradict his statement.


by upper left on Tue Jan 22, 2008 at 03:53:30 PM EST
[ Parent ]

Re: Don't forget the house and the campaign cash (none / 0)

"The difference between Obama and Clinton is that Obama's situation - which is far more compromised than anything in Whitewater"

Based on what?

Fitzgerald has been investigating Rezko for over a year.  If the evidence had lead to Obama he would have fol owed it.  Your claim is completely upside down.

You are attempting to put the burden of proof on the wrong foot.  You cannot reasonably ask Obama to prove a negative.  It is up to the critics to find evidence of wrong doing.


by upper left on Tue Jan 22, 2008 at 05:01:35 PM EST
[ Parent ]

again, we don't know that... (none / 0)

nor do we have any indication that rezko has mob ties.  i know, i know, it's chicago so you probably think everyone who lives there is connected to the outfit.

feel free to show how obama benefited "to the tune of $900k from Rezko."  that's a figure seymour made up.

which doesn't make it true...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:55:36 AM EST
[ Parent ]

i wouldn't go too far here... (none / 0)

unless you know something about patrick fitzgerald's investigations that we don't.  i fail to see compromised behavior on obama's part, although clearly you want to infer that...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:52:52 AM EST
[ Parent ]

obama has admitted to all the money he got... (none / 0)

and given it back.  the obama campaign, and not the suntimes, is in position to know who bundled contributions for them.  the suntimes infers rezko's involvement through some kind of computer model that they won't share with you.

you obviously are free to believe the right-wing suntimes.  the obama campaign is not required to do so.

strangely, the obama's paid about what barack made on his book advance for this house.  i would hardly call it a mansion, but if you must, then we'd have to call the TWO houses the clintons own mansions, as well.  the inference that the obamas could not afford their house demonstrates just how desperate hillary's supporters are...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:49:41 AM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Does anyone really think that the repubs are going to lay down their weapons and NOT use this against Obama just because he says there is nothing there?

Please...that is the fairytale...


by americanincanada on Tue Jan 22, 2008 at 03:27:21 PM EST

Re: What about Rezko? There is No There, There. (none / 0)

fairytale indeed

Like yesterday "i dont like spending the last few days, weeks, month defending..."

well guess what Obama, you're going to need to spend the next 10 months defending against the GOP


vote blue in 2008
by sepulvedaj3 on Tue Jan 22, 2008 at 03:29:03 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Exactly. Obama's supporters want us all to take him at his word and not look at his record, they don't want anyone to ever questiona word he has said or anything he has ever done. The repubs will not do that and neither should his opponents.

His is a deeply flawed candidate who will love if he gets the nimination. I don't want another 8 years of republican rule.

They will attack Hillary as well but the american people will blow it off as yesterday's news.


by americanincanada on Tue Jan 22, 2008 at 03:33:38 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

That's why, over the past three weeks, his national trend line has continued to climb while hers has continued to fall.  Watch, they'll cross just before fat tuesday.


by converse on Tue Jan 22, 2008 at 03:58:48 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Did you even bother to read my diary?  I said that this is a legitimate subject I am just pointing out that this is very thin soup.

Try a substantive response.


by upper left on Tue Jan 22, 2008 at 03:59:01 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Actually, at some point, similar to the point that many democrats are reaching now, voters will turn against the smear machine and support Obama.


by converse on Tue Jan 22, 2008 at 03:53:12 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

The point is that Obama is not accused of any wrong doing.

So far this is nothing more than a guilt by association attack.

Are you suggesting that the Clintons financial backers are all clean as a whistle?


by upper left on Tue Jan 22, 2008 at 03:40:11 PM EST
[ Parent ]

Please! (none / 0)

Talk to us when one of Obama's financial directors is indicted.


by Drummond on Tue Jan 22, 2008 at 03:29:35 PM EST

Oops (none / 0)

That was meant in response to another post.


by Drummond on Tue Jan 22, 2008 at 03:30:19 PM EST
[ Parent ]

Re: Oops (none / 0)

Rezko is indicted.  And Obama's name has surfaced in the documents as a result of the donation he received through the man whose son served as an intern in his office.


by truthteller2007 on Tue Jan 22, 2008 at 03:32:35 PM EST
[ Parent ]

Of course it's surfaced (none / 0)

I seem to remember an Asian guy indicted with Hillary's name all over his activities.  In both cases it means nothing.  It'll get a little play on the blogs for a week or two, then it'll slide back into the obscurity from which it came.


by Drummond on Tue Jan 22, 2008 at 03:41:24 PM EST
[ Parent ]

Re: Oops (none / 0)

One paragraph in a 78 page document, and his name is not mentioned.  

Rezko is accused of reimbursing someone for making a contribution to Obama's Senate campaign in '04.  There is no suggestion that Obama knew anything about this alleged violation of campaign finance law.  

That is all there is, the rest is all innuendo and guilt by association.


by upper left on Tue Jan 22, 2008 at 03:43:54 PM EST
[ Parent ]

Re: Oops (none / 0)

No, I recommend you read and reread my diary until it is fully comprehended.  Obama is the "unnamed politician" in the paragraph on page 78 of the document filed by federal prosecutors against Rezko, the indicted slumlord whose kickback schemes helped fund Obama's 2004 Senate campaign.


by truthteller2007 on Tue Jan 22, 2008 at 03:46:23 PM EST
[ Parent ]

those lies??? (none / 0)

your swiftboating of obama does not recommend itself to honest people.  you lied throughout the diary and you completely and dishonestly exaggerate rezko's connection to obama, presumably to help republicans win the general...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:57:24 AM EST
[ Parent ]

Don't (none / 0)

try to be logical here.  Don't try to give perspective - many of the posters here have closed there ears.  I have come to the conclusion that many must be Clinton staffers.

The crap that the Clinton's have profited from makes any campaign contributions that Obama got look like child's play.

The Republican's are salivating to get at Hillary.  Why do you think they are joining the attack on Obama - he would be a formidable opponent.  

Hillary is trashing the Democratic party for her own good - but don't take my word for it. Ask Kennedy, Clyburn, Leahy, and many others.  Bill and Hillary are about Bill and Hillary foremost.  


Listening comes first
by Moonwood on Tue Jan 22, 2008 at 03:46:31 PM EST

Re: What about Rezko? There is No There, There. (none / 0)

There is a there there.

Look, the basic fact is that Barack Obama has had a friendship and working relationship with Tony Rezko for at least 16 years.  

Rezko has been a key fundraising bundler and sherpa for Obama at every step of Obama's political career.

Obama's children sleep in a house that Obama was only able to afford with the financial assistance of Tony Rezko.

Obviously, no one has yet established any grounds on which to suggest that Obama is in any legal jeopardy. However, that is not the standard for Obama. Obama never fails to uphold himself as a leader of ethics reform and the opponent of a pay-to-play political culture.

The standards are higher for Obama. There is no excuse for him to be so cozy with a guy as sleazy as Rezko. Rezko is at the center of the biggest public corruption scandal in Illinois in a generation. Any real champion of "ethics reform" or opponent of corruption could never allow himself to be so buddy-buddy with a crook like Rezko. Obama's failure here isn't legal, it's moral. And he deserves to be called out on it.


by blueflorida on Tue Jan 22, 2008 at 03:47:24 PM EST

Re: What about Rezko? There is No There, There. (2.00 / 1)

How is this anything other than "guilt by association?"

Are you suggesting that the Clintons have no backers who have issues? Don't be ridiculous.

This is a legitimate discussion, but so far you have nothing of substance.


by upper left on Tue Jan 22, 2008 at 03:51:33 PM EST
[ Parent ]

what's unethical about what barack has done? (none / 0)

nothing.  he knows someone who's been indicted.  he's admitted that rezko isn't one of his finer moments.  at worst, barack has acted as a good christian wrt rezko.

you exaggerate in your last paragraph.  the ryan trial is, by all accounts, "the biggest public corruption scandal in Illinois in a generation."


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:00:55 AM EST
[ Parent ]

Re: Here you go. (none / 0)

No one has suggested that Obama paid less than market price for his house.  He paid above market for the ten foot strip he bought from Mrs. Rezko.

It looked bad, and Obama admitted that it looked bad, but there has been no substantive allegation of wrong doing.  If Obama had paid substantially below market for the house, don't you think we would have seen appraisals backing up this allegation?


by upper left on Tue Jan 22, 2008 at 03:47:59 PM EST

Re: You're just not making your case. (none / 0)

Evidence? Source? You can't just pull it out of thin air.


by upper left on Tue Jan 22, 2008 at 04:00:24 PM EST
[ Parent ]

Re: You're just lying. (none / 0)

You're quoting Seymour Glass?!?  Give me a break!


by converse on Tue Jan 22, 2008 at 04:00:46 PM EST
[ Parent ]

Re: Your just not making your case. (none / 0)

"you may bullshit people here, but it doesn't inspire confidence in Obama that you can't honestly discuss his deals."

You may flap your arms and try to make this look bad, but you have not presented any evidence of wrong doing. If the appraisals existed you don't think that the Tribune and the Clintons wouldn't be waving them in the air?

You don't think that there is any appearance of conflict of interest in the millions BC has received from speaking fees.  As BC would say, "Give me a break!"


by upper left on Tue Jan 22, 2008 at 04:12:16 PM EST
[ Parent ]

where do y'all get these numbers??? (none / 0)

math is clearly not a strong suit of some here...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 07:58:18 AM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Look, the idea that the house transaction was just some everyday, run of the mill, arm's-length business transaction is just not credible.

There is very little substance to the connections between Obama and the federal indictment.  The significance of that aspect is solely as a headline - but there will be headlines, considering the GOP has already been sending press releases trumpeting developments in the Rezko case.  And some of the statements in this diary - like "the alleged actions took place after Obama was already in the US Senate" - are just factually inaccurate.  Don't oversell.

Overselling is really Obama's major problem at this point.  He made a serious error last night when he tried to act like his only connection with Rezko was doing five hours of work for him as a law firm associate.  At the time, that probably made Hillary look like the author of a slimy and fact-free attack; but when the media points out that Obama had a close relationship with the guy for 15 years, his credibility is going to take a serious, serious hit.  Bad judgment.


"Another problem we have...is that in election years we behave somewhat as primitive peoples do at the time of the full moon." --Harry Truman
by Steve M on Tue Jan 22, 2008 at 05:16:01 PM EST

Re: What about Rezko? There is No There, There. (none / 0)

Obama bought the house on the basis of the advance from his book.  He did not have the money to buy the house and the lot.  

He probably approached Rezko, or perhaps Rezko heard of the situation and approached him.  Obama bought the house and paid 300k under the asking price.  Mrs. Rezko bought the lot at full price.  If Obama got a sweetheart deal because of the Rezko's actions, then he should be criticized.  

My point is that I have seen no evidence that he paid less than fair market value.  I am sure that an appraisal must have been done at the time of the sale or that even now, comparable sales at the time could be used to evaluate whether he paid a fair market value. If he did not receive a "quo" and did not offer a "quid," where is the wrong doing?

I agree that it does not look good and that the Repubs will try to exploit it, but it is not as if HRC is as clean as the driven snow.  It seems to me, we should be talking about relative vulnerability.

Regarding the five hours, Hillary's attack specifically raised the issue of him doing legal work for his "slumlord contributor."  Obama's reply specifically addressed the issue of how much legal work he had done for Rezko.  

If any one has been overreaching, it is the Clintons with their efforts to distort Obama's record on the war, and his comments on Reagan and the Repubs.  Do you think you are applying your standard evenly?


by upper left on Tue Jan 22, 2008 at 05:42:05 PM EST
[ Parent ]

obama's bid was accepted before rezko was... (none / 0)

involved.  this fact is not disputed.  these two deals were not coordinated to give obama a better price, they were coordinated to benefit the seller of the property...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:08:06 AM EST
[ Parent ]

Re: obama's bid was accepted before rezko was... (none / 0)

Glad to hear this.  Do you have a source?


by upper left on Thu Jan 24, 2008 at 10:34:31 AM EST
[ Parent ]

the real estate transaction ws, by the accounts... (none / 0)

known to me, a favor done to an eager seller who was moving (or moved) out of state.  i don't know how "everyday, run of the mill, arm's-length business transaction," but it doesn't sound that unusual for realtors...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:03:32 AM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Obama bought the house on the basis of the advance from his book.  He did not have the money to buy the house and the lot.  

He probably approached Rezko, or perhaps Rezko heard of the situation and approached him.  Obama bought the house and paid 300k under the asking price.  Mrs. Rezko bought the lot at full price.  If Obama got a sweetheart deal because of the Rezko's actions, then he should be criticized.  

My point is that I have seen no evidence that he paid less than fair market value.  I am sure that an appraisal must have been done at the time of the sale or that even now, comparable sales at the time could be used to evaluate whether he paid a fair market value. If he did not receive a "quo" and did not offer a "quid," where is the wrong doing?

I agree that it does not look good and that the Repubs will try to exploit it, but it is not as if HRC is as clean as the driven snow.  It seems to me, we should be talking about relative vulnerability.

Regarding the five hours, Hillary's attack specifically raised the issue of him doing legal work for his "slumlord contributor."  Obama's reply specifically addressed the issue of how much legal work he had done for Rezko.  

If any one has been overreaching, it is the Clintons with their efforts to distort Obama's record on the war, and his comments on Reagan and the Repubs.  Do you think you are applying your standard evenly?


by upper left on Tue Jan 22, 2008 at 05:38:27 PM EST

Re: What about Rezko? There is No There, There. (none / 0)

I think your hyper-literal interpretation of last night's debate is not going to be borne out by public perception.

Obama can say all he wants that he was only asked about the specific issue of legal work for Rezko, that he wasn't asked about the house they bought together, the 15-year relationship between them, the political fundraisers Rezko held for him, and so on.  But people aren't going to buy it.

He clearly meant to give the impression that he barely knew the guy.  People are going to be surprised when they find out how untrue that is.  And responding by pointing to the definition of "is" isn't going to look good.

Which brings me to the other point.  Yes, there is absolutely a double standard here, but it's created by the fact that Obama is trying to run on credibility while Hillary is not.  Several times during last night's debate, Obama tried to push the message that you simply can't trust what Hillary says.  That's a narrative with some salience, but it all comes crashing down if Obama gets exposed as a regular pol who exaggerates and distorts just like everyone else.  This is just my take on political reality.

By the way, not to belabor the issue, but it's clear that Obama got some sort of special deal on the house.  If he was willing to buy and the seller was willing to sell for the price he actually paid, then it would have happened without the necessity for Mrs. Rezko to buy the lot next door.  Her agreement to pay the full asking price for that lot was obviously part of the consideration for the seller to accept Obama's offer on the house.  Again, you won't see the likes of Patrick Fitzgerald delving into this unless it's clear that Obama did the guy some political favor in return, but it looks very, very bad if you bought your house with a crook's help.

One of the chief allegations against Rezko is that he tried to extort $1.5 million from a guy seeking to do business with the state in order to funnel the money into Gov. Blagojevich's campaign fund.  That's obviously very, very shady stuff, and the GOP is going to make sure everyone knows exactly how shady this guy is.  As closely tied as Obama has been to the guy over the years, it's going to be very hard for him to come out of it looking clean.


"Another problem we have...is that in election years we behave somewhat as primitive peoples do at the time of the full moon." --Harry Truman
by Steve M on Tue Jan 22, 2008 at 05:52:24 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Thanks for a reasonable and civil response.

My understanding is that the seller of the house insisted that the house and the lot be sold together.  That is why Obama couldn't swing the deal without help.  The question is whether or not Obama paid fair market for the house, or whether Rezko paid over-market for the lot.  

This stuff is not rocket science. I left full-time political work about a decade ago and now own a renovation business buying houses, fixing them, and then reselling.  It should be a fairly simple matter for someone to call up comps for the given time period and see whether or not the deal was fair.

I agree that Obama faces a somewhat higher level of ethical expectation, but the hypocrisy of many HRC supporters really grates on me.  Obama is expected to be a Boy Scout while HRC is fine as the White Witch.  What should matter is relative ethics.  I challenge anyone to suggest that Obama has not run a more positive campaign; that he has not made more efforts to reduce the influence of monied interests on the political process; that he has not shown more sensitivity to the issue of lobbyist influence; and finally that he has not been more truthful in his statements than HRC.  He is not a Boy Scout; he wouldn't stand a chance if he was.  Obama is trying to win under a the rules of a very flawed system, but he has shown a consistent commitment to trying to make those rules better.  I think that matters a great deal.


by upper left on Tue Jan 22, 2008 at 06:12:47 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

It's interesting.  When I had this discussion with your colleague "bored now," he was equally adamant that there was no problem with the house deal, but for a completely different set of reasons.

For one thing, he was adamant that the house and the lot were two entirely separate transactions, that just happened to close on the same day, as if two different people had gone into the same 7-11 at different times on the same day.  For another thing, he was adamant that the seller's broker had been the one to bring Rezko into the deal, as if it's just a coincidence that Obama and his long-time associate come together to buy this property.

As should be obvious, I think your account is much more realistic.  I'll make this point, though.  We have Obama, who wants the house but can't afford the lot as well.  So he goes to his pal Rezko, saying "any interest in buying a lot so I can have this nice house?"  Sure, says Rezko.

Now, the seller insists on selling both, and his list price for both combined is X.  He ends up selling for X less $300,000 (if I have my numbers right), which we'll assume is still a fair market value for the property.  But in this scenario - especially since Rezko is the one doing a favor for Obama - why is it Obama who gets the benefit of the entire discount?  In an arm's length transaction, Obama and Rezko would certainly find out what kind of discount was available and then allocate it between themselves somehow.

So it sure seems to me like, even assuming everything else is kosher, Rezko conferred a benefit somewhere in excess of $200,000 on Obama by letting him keep the entire discount on the combined house + lot.

Now, as I said, I'm really only focused on the political salience of this whole issue, which I think is a valid concern.  But it does seem to me like no matter how you slice it, Obama got a valuable benefit out of Rezko's participation in the detail, beyond the fact that he got a house he couldn't afford otherwise.


"Another problem we have...is that in election years we behave somewhat as primitive peoples do at the time of the full moon." --Harry Truman
by Steve M on Tue Jan 22, 2008 at 06:59:58 PM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Sorry, I double posted this:

I understand your point.  

Even given your assumptions, most of the concession should have gone to the Obamas, because the house was a much greater share of the total price than the lot. I think the lot was $600,000, the house was $1.6 mil. Under this scenario if the benefit should have been apportioned 72% to the Obamas or $218,000.  Rezko under your assumptions should have gotten the remaining $82,000.

In the real world the house has one value and the lot has another.  The question remains whether or not the Obamas paid fair market value or if Rezkos paid above market implying some sort of subsidy.  I still think it should be fairly simple to assess this even after the fact.  I infer that the Obamas did not get an obvious benefit or it would be easy to demonstrate that they paid below market value.

Again, I agree it looks bad, and Obama has agreed that it was a boneheaded move.  No doubt the Repubs will try to exploit it.  For God's sake they are trying to label him a Muslim when he has been a Christian for over two decades.

On the other hand, visualize the attack ads that will be coming HRC's way.  I prefer one sketchy house deal with a very genuine and authentic candidate to reliving all the horrors of the 90s.  I think their is a very real chance that Hillary could loose to McCain.  Do you share my concern?


by upper left on Tue Jan 22, 2008 at 07:32:42 PM EST
[ Parent ]

then why was obama's bid accepted before rezko... (none / 0)

got involved?  closing was way more than 30 days later (i don't recall the exact number).  if obama benefited, why did the seller agree to give that benefit on spec?  


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:44:52 AM EST
[ Parent ]

we don't know that the deal wouldn't have... (none / 0)

happened without rezko's involvement.  that's speculation.  all we know is: a.) there were two properties for sale by the seller, b.) that the owner was highly motivated to sell both properties because he was leaving (or had left) the chicago area, c.) that there were three different realtors involved, each representing the different parties, and d.) the houses closed on the same day.  from what i know, obama's bid for the house was accepted several days before rezko was ever involved.  there is some disagreement about who brought rezko in -- obama has claimed that he did while obama's realtor says they did.

obama's problems emerge simply from the fact that he knew rezko (as every pol in chicago did) and that he's running for president.  it's way too easy to read more into this (as more than one diarist has done).  given what rezko's lawyer has said, obama's name won't come up in rezko's trial; and that could be the end of this -- except the rumors created by the swiftboaters...


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:42:44 AM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

I understand your point.  

Even given your assumptions, most of the concession should have gone to the Obamas, because the house was a much greater share of the total price than the lot. I think the lot was $600,000, the house was $1.6 mil. Under this scenario if the benefit should have been apportioned 72% to the Obamas or $218,000.  Rezko under your assumptions should have gotten the remaining $82,000.

In the real world the house has one value and the lot has another.  The question remains whether or not the Obamas paid fair market value or if Rezkos paid above market implying some sort of subsidy.  I still think it should be fairly simple to assess this even after the fact.  I infer that the Obamas did not get an obvious benefit or it would be easy to demonstrate that they paid below market value.

Again, I agree it looks bad, and Obama has agreed that it was a boneheaded move.  No doubt the Repubs will try to exploit it.  For God's sake they are trying to label him a Muslim when he has been a Christian for over two decades.

On the other hand, visualize the attack ads that will be coming HRC's way.  I prefer one sketchy house deal with a very genuine and authentic candidate to reliving all the horrors of the 90s.  I think their is a very real chance that Hillary could loose to McCain.


by upper left on Tue Jan 22, 2008 at 07:29:42 PM EST

Re: What about Rezko? There is No There, There. (none / 0)

I notice this diary lacks citations.  Perhaps the diarist should rely on sources other than his or her opinions.


by truthteller2007 on Wed Jan 23, 2008 at 12:01:53 AM EST

i rather have his opinions than your lies... (none / 0)


"Anyone who voted for me or caucused for me has so much more in common with Senator Obama than Senator McCain." -- Hillary Clinton
by bored now on Wed Jan 23, 2008 at 08:45:11 AM EST
[ Parent ]

Re: What about Rezko? There is No There, There. (none / 0)

Mostly, I referenced the very same articles that you quoted selectively in your piece.  

I am sorry that I suck with HTML so I don't have lots of links.

If you think I have misrepresented any of the facts, make your case.  Your piece is typical "Clintonian/Rovian" misrepresentation.  Take a few selected facts out of context, pour in some guilt by association, stir liberally with lots of innuendo, and bake until done.

How do you justify your misrepresentations?

If you want change, stop acting like a Republican.


by upper left on Thu Jan 24, 2008 at 10:45:36 AM EST
[ Parent ]


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