Republicans Excel at PEU, Democrats Starting to Stink Mightily

Private equity underwriter, The Carlyle Group has a long "A list" of Republicans at the Pennsylvania Avenue firm. The party of elephants is over represented on most other PEU's. Bain Capital even produced Presidential aspirant Mitt Romney. Ex-Treausury Chief John Snow and V.P. Dan Quayle help out Cerebus Capital Management which was recently given Chrysler for a song from Daimler.

However, Democrats are trying to catch up. President Bill Clinton is advisor to several Yucaipa funds while ex-Senate Majority Leader Tom Daschle sat on the board of Apollo Management for a mere three months before withering.

Both parties compete for big money and in doing so put influence up for bid. The big money just keeps on getting bigger. Carlyle now manages over $58.5 billion and growing. The several year spike in oil and gas prices produced some serious ka-ching looking for an investment home. Middle Eastern governments are looking to put those state oil company proceeds to work. President George H.W. Bush has done work for Carlyle in the Middle East where he happens to have good relations (as opposed to his son, George W.).

It looks like Republicans and Democrats have a different competition going on behind the scenes. Which firms will land the overflowing oil coffers? Will they try to discredit the other?

That must be the reason the media has been button lipped over the hedge fund owner suing infoUSA for Clinton plane trips. Donald J. Nutter served on another board with Republican candidate Mitt Romney from 1990-1993.

Rather than throw the money changers out of our hallowed halls of government, both parties have invited them inside for some wining and dining...

Senate Finance Committee Deep in Pockets of Private Sector Health Companies

As the Congress wrestles with ways to cover more uninsured people while spending existing dollars more effectively, it's encountering some inertia. Members of the Senate Finance Committee received significant campaign donations from health insurance companies and for-profit hospital firms.

Their ties to health insurors slowed the Democrats appetite to cut funding for Medicare Advantage programs to the level of the average Medicare recipient. The 12 percent higher fees paid by the government accrue to health insurance companies. Both Republicans and Democrats benefit from their cozy relationship with WellPoint, United Health, Humana and Aetna. The health insurance sector donated $7.4 million ($4.5 million to Republicans & $2.9 million to Democrats) the last election cycle and $32 million lobbying the last two years.

The Finance Committee's ties to for-profit health care is evidenced by Senator Chuck Grassley's parroting their favorite position, the unfair advantage nonprofit community hospitals have with their tax exemption. Chuck is concerned about huge executive and board member pay.

Here's a hint Chuck. Recall Sallie Mae? The once government services organization moved over to that "more efficient" private sector. Does Chuck know how much they pay their board members annually? Each makes well over $200,000 a year but that's not all. With the proposed Sallie Mae buyout, the least a board member will gross is $7.7 million.

While Chuck and Congress dragged their feet on the growing legions of uninsureds, 80-90% of community hospitals suffered some form of financial distress. This estimate came from Denny Shelton, CEO of for-profit Triad Hospitals as he explained why the company had so many good acquisition candidates.

Just like Chuck Grassley, Evan Bayh, Max Baucus, Kent Conrad, and many more sold out to private sector health companies, your local nonprofit community hospital may soon do the same. Is that what our country needs? No, but when the pocketbook is our only criteria, that's what we get...