Candidates for Sale

Look, we all knew this was coming. Once Obama vanquished Hillary Clinton, it was inevitable that his campaign would start roping in the Clinton moneymen for the fall confrontation with McCain. Among those snagged by Obama were Iranian millionaire and former Democratic Senatorial Campaign Committee chairman Hassan Nemazee, venture capitalist Alan Patricof and the touchingly plugged-in Wall Street power couple Maureen White (First Boston) and Steven Rattner (Morgan Stanley). Rattner and White, the former chief fundraiser for the DNC, are longtime friends of the Clintons; she quit the DNC in 2006 to build Hillary's war chest, while he backed Joe Lieberman against Ned Lamont and flirted with a Mike Bloomberg presidential run. Such are the people who are now whispering in Obama's ear.

Over the summer, the Obama camp has relentlessly pushed the notion that its record fundraising is mainly the result of small online donations. The first presidential candidate to raise so much money that he could afford to eschew the spending limits that would be imposed if he accepted federal matching funds, Obama claims that he opted out of public funding so that he could have a campaign "truly funded by the American people." And indeed, he has a record number of small donors, with some 45 percent of his campaign cash coming from contributions smaller than $200.

Which is a great percentage — but it's only eight points better than John Kerry in 2004 and only 14 points better than George Bush that same year. In truth, Obama is still raising tons of money from big corporate donors. In June alone, as Obama was raking in more than $30 million from small donors, he also bagged $6 million in a single fundraiser at Ethel Kennedy's home in Virginia and another $5 million at an event in Hollywood. But time and time again, you see Obama aides boasting about how the day of the big-dollar donor is over. "More people are involved, and I think that necessarily dilutes the impact of any individual — which is probably a good thing," one prominent Obama supporter recently declared. This staunch champion of the small donor happened to be none other than James Rubin, son of former Goldman Sachs co-chairman Bob Rubin.

Obama's decision to embrace Clinton's moneymen coincided with his decision to attend a public forum on economic policy with an A list of Clinton-era economic advisors, including Rubin and Corzine. "The message is that he's going to be a friend to Wall Street, just as Bill Clinton was a friend to Wall Street," says Pollin. "Wall Street will want to be at the head of the table."

By now it should be clear what type of service Wall Street will demand. The financial disaster dumped on us by eight years of Bush's mismanagement has left America with the prospect of short-term solutions in the form of massive government bailouts, and long-term solutions in the form of reform and regulation. A big chunk of the $1 billion in cash that will be spent on the presidential race this year represents Wall Street's desire to make sure that both candidates can be counted on to make the short-term bailouts large and passionate, and the reforms gentle and halfhearted. "They want to make sure there's socialism when they need it — bailouts — and capitalism when they need that," says Pollin.

Both candidates are already falling all over themselves to signal their business-friendly approach to the economy. McCain entered this election with a reputation as a strict Goldwater conservative. "I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly," he declared. McCain also sounded off in the past about troubled quasi-governmental lenders Freddie Mac and Fannie Mae, pledging to "make them go away" and to strip them of their right to lobby.

But this year, McCain — perhaps emboldened by the $238,100 he got from seven JP Morgan Chase executives or the $500,000 bundled for him by Chase executive James Lee Jr. — caved in and supported Chase's outrageous government-backed acquisition of Bear Stearns. He also backed the recent bailout of Freddie Mac and Fannie Mae — no surprise given that former Fannie Mae lobbyists are serving as his chief of staff and the head of his vice presidential vetting panel.

Obama also supported the Freddie Mac-Fannie Mae rescue, and that, too, is no surprise, given that he hired one former chairman of Fannie Mae to chair his vice presidential vetting panel and hired another former Fannie Mae chairman to serve as his consultant on housing issues. Most of us will never get within a hundred miles of a single Fannie Mae chairman, but Obama has already hired two — and he isn't even president yet.

This, folks, is the way of the world. Forget all the promises to make the rich pay their fair share. As the candidates get closer to office, the actual paying customers move to the front of the line.