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COLUMNISTS
TODAY'S STORIES
21.02.2008
Mysteries of the Universe Revealed

For many weeks, a growing chorus of political observers--reportedly including some within the Clinton campaign itself--have wondered why, exactly, Hillary Clinton hasn't fired the architect of her (thus far) woefully unsuccessful strategy, Mark Penn. Politico.com at last supplies a persuasive answer: She owes him too much money.

Hillary Clinton ended January with $7.6 million in debt -- not including the $5 million personal loan she gave to her campaign in the run-up to the critical Super Tuesday elections, according to financial reports released Wednesday.... More than $2 million of the red ink is owed to chief consultant and adviser, Mark Penn.

Much more on the Clinton campaign's financial woes can be found here.

--Christopher Orr

Posted: Thursday, February 21, 2008 12:02 AM with 16 comment(s)

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WoodyBombay said:

OK, so obviously Mark Penn cries his eyes out every time he goes to the bank.

The question is, are they tears of shame, or laughter?

February 21, 2008 12:20 AM

huntlib said:

That report is amazing. Remember all the questions about fundraising shenanigans?

"Clinton raised about $20 million in January, including her loan. She spent nearly $29 million during the month."

"She reported a cash balance of $29 million. But more than $20 million of that is money dedicated to the general election. Her personal loan accounts for more than half of the remaining approximately $9 million, leaving just about $4 million in cash raised from donors."

"But even that money is illusionary when measured against the reported $7.6 million in debts."

February 21, 2008 12:24 AM

ralphnelle said:

Ouch. Talk about a waste of money. This, much more than any tears or "pile on," makes me feel genuine sympathy for Hillary.

February 21, 2008 12:38 AM

Rhubarbs said:

So Hillary isn't even good at being rich? Because if you owe a consultant two-hundred grand, then he owns you; but if you owe a consultant two million bucks, then you own him. Or you do if you know the first thing about how debt works at the high-stakes table.

But it's worth remembering that candidates don't drop out because they're losing. They drop out because they run out of money. The assumption has been that that rule doesn't apply to Hillary, whose ability to raise money is supposed to be unfettered by any relationship to her ability to win elections. If Politico has the right of it here, then that advantage is an illusion, and the entire Hillary campaign is based on the Wile E. Coyote theory that you can keep walking past the edge of the cliff just as long as you don't look down.

February 21, 2008 12:47 AM

ralphnelle said:

Dear Hillary: cut your losses. Let the village idiot go. Simply getting him out of the office should save you thousands in donut expenses.

February 21, 2008 12:51 AM

Rhubarbs said:

Oh, and Politico buries a potential lede: Hillary is opting not to pay her staff's insurance coverage bills on time. "Insurance mandate crusader Clinton ducks payment for her own employees' coverage."

February 21, 2008 12:54 AM

Ghost in the Machine said:

"Hillary Clinton ended January with $7.6 million in debt – not including the $5 million personal loan she gave to...

February 21, 2008 1:51 AM

ChanRobt said:

Bill can easily cover this chump change with one trip to Kazakhstan.  

Or, he can 76 speeches at $100/k speech.  That's fewer than 1 and a half speeches a week.

What's the prob, gang?

February 21, 2008 2:18 AM

teplukhin2you said:

Doesn't speak well of her ability to manage, say, the Oval Office, let alone the executive branch....

February 21, 2008 4:43 AM

teplukhin2you said:

Chan - let's you and me package some CCOs (Collateralized Clinton Obligations) backed by cash flows from Bill's speaking schedule and syndicate them along with Goldman and Morgan Stanley. Include some covenants specifying at least one trip to each Central Asian "republic" and one to Dubai in the next three weeks and an airtight no-hummer clause to keep Bill on the high road to cash flow. You in?

February 21, 2008 4:47 AM

miceelf said:

I still have trouble understanding why Mark Penn is paid as much as he is. Does anyone know Axelrod's salary? Is my suspicion, that Penn is paid an order of magnitude more, correct?

February 21, 2008 8:02 AM

tkozal said:

well, little Chelsa can have some of her Hedge Fund friends pony up some to help Penn get whole. Oh thats right, Mommy doesn't like them anymore!

What a joke. How you run your campaign is a reflection of yourself, and how you would govern.

In that area, Hillary has FAILED totally.

February 21, 2008 8:19 AM

virginiacentrist said:

You guys saw that she's charging interest to her campaign, right?

February 21, 2008 8:23 AM

virginiacentrist said:

To quote Arrested Development:

Mark Penn's just a turd out there. He can't poll, he can spin. He's just a turd...

February 21, 2008 9:36 AM

blackton said:

Just because she owes him money means she has to continue to listen to him? Hillarys solution, when on a losting streak double down with the same losing hand as always.

Oh, and Rhubarbs, it is ok, she is just mandating her employees buy the insurance on their own dime.

February 21, 2008 10:06 AM

cspencef said:

All sorts of ways to spin this against her as chief executive--"Ready from Day One, but Not For Day 101" might be a start.

February 21, 2008 12:00 PM