Wednesday, June 6, 2012

Throw Them All Out By: Peter Schweizer

If I had only one word to describe this book, it would have to be "shocking".  It is no wonder why people are dying to get in the race.  The level of corruption taking place in Washington D.C. is absolutely shocking.  If just a fraction of this book is factual, it is a painfully obvious why the Legislative branch has dismal support.

Schweizer  touches on the many ways (scams) the Political Class game the system to their advantage.  Politicians like Harry Reid, Nancy Peloci and Dennis Hastert have all used federal earmarks to enhance the value of their commercial properties.  Is there instances when some of the politicians invest in companies as any other private citizen and enjoys a windfall gain?  Sure, but just the examples in this book make the odds against someone picking the winners a few days before major legislation is passed or sold the day before some negative bill or regulation was passed defies all sanity. 

Schweizer, the author of another book of the same genre, "Do As I Say Not As I Do" pulls no punches and does not dwell on partisan bull.  It is painfully obvious in this book that the problems that exists today are ironically "bipartisan".  This Political Class protect each other and give the illusion that there is partisan bickering taking place.  Both sides benefit from the insider trading.

Once again, the Political Ruling Class have shown that they are out of touch with the real world.  Reminds me of the following:

If this spirit is ever corrupted to the point that it will tolerate a law which does not apply to both the legislature and the people, then the people will be prepared to tolerate anything but liberty. —James Madison, Federalist No. 57

Some notable quotes from the book:

Regarding the access by oversubscribed IPOs by politicians

Companies recognize the importance of having friends in powerful places, and granting them access to an IPO is one way to reward them. Members of Congress often participate in IPOs that are difficult, if not close to impossible, for ordinary Americans to join. Pelosi and her husband have been involved in no less than ten lucrative IPOs during her congressional career.  Pg 58


Regarding Warren Buffet and how he benefited from the bail-outs and stimulus-

September 23 that he became a highly visible player in the drama, when he invested $5 billion in the investment house of Goldman Sachs, which was over-leveraged and short of cash.

Great book.  Not long but very informative.  I recommend it.

Hardcover: 224 pages
Publisher: Houghton Mifflin Harcourt Trade (November 15, 2011)
Language: English
ISBN-10: 0547573146
ISBN-13: 978-0547573144

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