Hypocrisy, Cronyism, and Bad Politics Threaten Gingrich Candidacy
Hypocrisy, cronyism, and bad politics aren't going to get you very far in the 2012 presidential race. Which is why Newt Gingrich's ties to the government-sponsored mortage company Freddie Mac is a story with legs.
Gingrich earned $1.6 million to $1.8 million from Freddie Mac between 1999 and 2008, Bloomberg News reported Tuesday. The payments were far more than Gingrich had previously acknowledged.
The story is trouble for Gingrich on two fronts. First, conservative voters firmly believe that Fannie Mae and Freddie Mac are examples of a government out of control and unaccountable. Many GOP voters blame the mortgage giants for the housing collapse. Second, the revelations are at odds with Gingrich's own words.
-- He has blamed Freddie Mac for the collapse of the housing market.
-- He has been harshly critical of others associated with Freddie Mac and Fannie Mae. He said Rep. Barney Frank, a Democrat from Massachusetts, should be jailed for his association with "a lobbyist who was close to Freddie Mac." He demanded in 2008 that President Obama give back any money his campaign received from Freddie Mac executives.
His wobbly response to the controversy can be summed up in four words:
Deflect: Gingrich sought to downplay the report on Wednesday, saying Freddie Mac was just one of many companies he has helped. "Gingrich Group has many clients," he said.
Distort: He suggested in a CNBC debate last week that he had acted merely as a historian for Freddie Mac. In fact, officials with the firm told The New York Times that Gingrich advised them on how to win over conservative foes, spoke to its political action committee, and offered general political advice. History professors don't make seven figures.
Dissemble: Gingrich said at the debate that he warned Freddie Mac of the looming housing crisis. "As I said to them at the time, this is a bubble. This is insane. This is impossible." Five officials with knowledge of the interaction told the Times they had heard no such thing from Gingrich.
Dare: The thin-skinned Gingrich claimed on Wednesday that he welcomed the scrutiny now that polls show him in the top tier of the GOP field. "Everybody will dig up everything they can dig up," he said. "That's fine; they should."
And they will.
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