Candidates for Sale

All the same, plenty of other evidence suggests that much of Wall Street is betting on an Obama win. In fact, some observers believe that KKR announced a multibillion-dollar public offering this summer because it expects McCain to lose. "They're doing the public offering now so that the compensation can be taxed at the lower rate while Bush is still in office," says a strategist for a major labor union. "They're betting Obama is going to win, and they're getting their money while they can."

Other companies are getting in on the ground floor with the new chief by stuffing money in his ears. Overall, Obama is flat-out kicking McCain's ass when it comes to Wall Street contributions, raking in nearly $9 million from securities and investment executives, compared to $6.2 million for McCain. Obama has received more contributions from Goldman Sachs than from any other employer — more than $627,000 at this writing — not to mention $398,021 from JP Morgan Chase, $353,922 from Lehman Brothers and $291,388 from Morgan Stanley. Even among hedge-fund executives, who have an unequivocal interest in electing McCain, Obama is whipping the Republican, collecting $500,000 more than McCain. All of which begs the question: Why would corporate giants like these throw so much weight behind a man who promises to strip them of billions in tax breaks?

Sadly, the answer to that question increasingly appears to be that Obama is, well, full of shit. He has made no bones about his plans to raise income by soaking the rich, promising to roll back the Bush tax cuts for people making over $250,000, increase the top tax rate on capital gains to 25 percent and raise the top rate on qualified dividends. He has also pledged to deliver a real stomach punch to hedge-fund managers, raising the tax rate on most of their income from 15 percent to 35 percent.

These populist pledges sound good, but many business moguls appear to be betting that the tax policies, like Obama himself, are only that: something that sounds good. "I think we don't want to make too much of his promises on taxes," says Robert Pollin, professor of economics at the University of Massachusetts. "Not all of these things will happen." Noting the overwhelming amount of Wall Street money pouring into Obama's campaign, even elitist fuckwad David Brooks was recently moved to write, "Once the Republicans are vanquished, I wouldn't hold your breath waiting for that capital-gains tax hike."

Those worried that Obama might be all talk when it comes to needed reform had a real scare in July, when the senator failed to show up to vote for the Stop Excessive Speculation Act, a bill designed to curb rampant oil speculation. Oil speculators provide the perfect microcosm of what happened to the economy under Bush. Back in 2001, investment banks like Goldman Sachs and JP Morgan got together and created an online exchange called the ICE for trading energy commodities. The ICE ended up buying the British-regulated International Petroleum Exchange; it then opened trading windows in the U.S., allowing Wall Street investment banks to make oil-futures trades on American soil, on their very own commodities exchange, without any federal regulation whatsoever.

"In financial terms, they were playing blackjack at tables where they themselves were the dealers, in casinos they themselves owned," says Warren Gunnels, a senior policy adviser to Sen. Bernie Sanders. "It was crazy." Trading on the ICE had a massive impact on U.S. gasoline prices, and more than one legislator wondered if energy speculators were manipulating the market, as energy traders like Enron had been before. The speculation bill was designed to regulate the ICE and place limits on trades. But on the day before Obama returned from his eight-day, eight-country, megadazzling international photo op, Democrats failed by a vote of 50-43 to force a vote on the bill, as heavy lobbying by investment banks like Goldman Sachs torpedoed the effort.

Not only did Obama not show up to vote, he appeared at a public forum three days later flanked by Jon Corzine and Robert Rubin, two former Goldman executives, to discuss how to revive the economy. Here you have the basic formula of campaign contributions in a nutshell: Powerful investment bank gives big money to candidate, needed reform requires candidate to cross said investment bank, candidate pussies out and finds way to be gone at the moment of truth, candidate resurfaces later in arms of aforementioned investment bankers.

Obama's absence on oil speculation was eerily reminiscent of his previous decision to change his mind about giving retroactive immunity to telecom companies for spying on Americans. Obama withdrew his pledge to filibuster the immunity bill right around the time the Democrats announced that AT&T would be sponsoring the Democratic convention. So no filibuster on retroactive immunity from the top Democrat — but conventiongoers in Denver will get tote bags emblazoned with the AT&T logo. So that's something.