Clinton Attacks Wall Street

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The New York Sun

Outrage is mounting on Wall Street as Senator Clinton ratchets up her antibusiness rhetoric in a bid to woo working class voters, whose support could determine whether she is a viable presidential candidate after today’s votes.

Heading into the crucial Indiana and North Carolina primaries, the New York senator is neck and neck with Senator Obama. With 187 Democratic delegates at stake, the opponents are pulling out all the stops.

Yesterday, Mrs. Clinton’s normally responsive camp took a full 24 hours to correct widely reported accounts that she had said in a speech during the Indiana Democratic Party’s Jefferson-Jackson Day dinner: “Why don’t we hold these Wall Street money-grubbers responsible for their role in this recession?” In fact, she said: “Wall Street money brokers.”

Either way, the sentiment is the same, according to many on Wall Street.

“If America is still the land of milk and honey it’s because the fertilizer comes from Wall Street,” the chief executive of the research firm Wall Street Strategies, Charles Payne, said. “There is something wrong when it’s okay to make $100 million for giving speeches, yet when you help to facilitate the growth of America, which in turn employs millions of people, you can be a villain if you are paid too well.”

Mrs. Clinton has been honing her populist message since the Pennsylvania primary, and has recently turned up the heat in an effort to solidify her white, working-class base. Yesterday, she took a swipe at the Organization of the Petroleum Exporting Countries, telling a crowd in Indiana that OPEC “can no longer be a cartel, a monopoly that get together once every couple of months in some conference room in some plush place in the world” to set the price of oil. She reiterated her intention to use antitrust law to sue OPEC for price-fixing.

Mrs. Clinton is also pushing to temporarily repeal the gas tax, a proposal widely panned by Wall Street, with some 200 economists, including four Nobel Prize winners, signing a letter yesterday rejecting the idea. Mrs. Clinton dismissed the critiques, telling George Stephanopoulos on ABC News on Sunday: “I’m not going to put my lot in with economists.”

Her view is “naïve,” Ron Geffner, a partner at the law firm Sadis Goldberg, which advises Wall Street firms, said. “Like it or not, the economy is the product of good old-fashioned American greed at every level.”

Mrs. Clinton has also ramped up her attacks on China, driving even some of her supporters to jump ship. Last month, a political science professor at the Center for Chinese Studies at UCLA, Richard Baum, left her campaign for what he told Politico.com was “grossly misguided accusations” she made about the communist-led country.

Despite this departure, Mrs. Clinton has increased her criticism of China, telling a crowd in Indiana earlier this week the country “manipulates its currency to our disadvantage, they engage in broad-based intellectual property theft, industrial espionage, they do not follow the rules they agreed to follow when they joined the WTO. What do we get in return from them? Well, we get tainted pet food, we get lead-laced toys, we get polluted pharmaceuticals.”

Attacking Wall Street as a means for gaining support among low- and middle-income Americans was bound to happen in this election cycle, the executive editor of the online business publication Minyanville, Kevin Depew, said. “The last decade has seen unprecedented credit creation, which made people a lot of money. This can be a bitter pill to swallow on Main Street, especially with foreclosures increasing and many Americans facing hard times.”

Mrs. Clinton is merely reflecting the sentiment that she is getting on the ground from the voters, he said. “Politicians are followers, they cater to society, and the people they are meeting out on the campaign trails,” he said.

In what could be considered an illustration of this point, three Clinton aides during a conference call with reporters yesterday morning failed to deny reports that she had made the “money-grubbers” comment. When asked to square her statements with the fact many of her contributors came from Wall Street, and that her daughter Chelsea works at a hedge fund, a spokesman, Howard Wolfson, said: “Our supporters aren’t the grubbers.”

A Clinton strategist, Geoff Garin, told reporters during the same call, “She’s got a pretty clear standard here. Her abiding economic principle is that in America we’ve got to have shared prosperity.”

When asked to see a transcript of the speech to verify the statement, an aide told a New York Sun reporter that the transcript was on an intern’s home computer, and could not be handed out until today.

Mr. Payne called this “a scary and very slippery slope that is sure to backfire.” Allowing Wall Street to be the scapegoat for larger economic woes is dangerous, he said, because “when we punish people for being too rich, they stop doing the things that got them there.”


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