October 17, 2006
DNC Takes Out Loan For DSCC
The DSCC's optimism about winning the Senate is apparently contagious as the DNC is going to pony up an extra $5-10M for the Senate committee, according to sources familiar with the previously reported arrangement between the two campaign orgs.
While the DNC doesn't have $10M to just toss around to another campaign committee, the DNC apparently has decided to go into debt to come up with the extra cash DSCC Chair Chuck Schumer has been pleading for from DNC Chair Howard Dean. The actual amount of the loan the DNC is taking out is not known as the committee holds out hope they can raise nearly everything they need before the election. But a line of credit has been opened.
The money is not designated for specific Senate races, however, sources tell us that two races in particular were used as leverage in negotiations between the DSCC and the DNC. Those two races: New Jersey and Virginia. Apparently the extra DNC money will help soften the financial blow the DSCC was taking by incurring the extra cost of saving Sen. Bob Menendez from the challenge of Republican Tom Kean Jr. as well also trying to target Virginia. New Jersey and Virginia sport three of the most expensive media markets in the country (NYC, Philly and DC). In addition, TN was also a factor in the DNC-DSCC discussions as the investment the DSCC is making is possibly more than they expected.
A national party committee taking out a loan toward the end of an election cycle is not unusual, particularly on the Democratic side of the aisle. In '04, the DCCC took out a loan in an attempt to save the Texas Democratic House incumbents. In the end, four of those five Texas Democratic incumbents lost.
There has been some speculation (driven a bit by Democratic pundits like James Carville) that the DCCC might take out another loan this cycle in order to spend money on some of these new House seats that have come into play over the last few weeks.
The RNC is proving to be an important cog to the Republicans' efforts to hold the House and Senate, particularly the Senate. It's been something that's gotten under the skin of Schumer and DCCC Chair Rahm Emanuel. It'll be interesting to see if Dean's decision to go into debt will finally get Schumer and Emanuel off his back. [CHUCK TODD]
Posted at 07:25 PM
Comments
Ouch, sounds a little too much like hedging to me. Notwithstanding the desire to bolster the war chest at this critical time, I remember borrowing money to invest in silver in 1979. It got me nowhere but poor. What happens if we use this approach in 2008. $5-10M would seem like pocket change. We need to do this on a contributed-cash basis, not with debt. Thanks, george
george | 10.18.06 08:24 AM
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Funny but it is only an issue since the RNC has more money. If the DNC had money old Rahm and Chuckie would be announcing how smart they are.
Bryan_C | 10.18.06 08:29 AM
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We should all show our gratitude to McCain and Feingold for "taking the money of of politics" !
Tom O'Brien | 10.18.06 08:32 AM
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Great. Talk about the appearance of impropriety! Instead of being beholden to special interests now they'll be literally in debt to special interests.
John Jones | 10.18.06 08:37 AM
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It appears that the elite liberals have hijacked the Democratic Party as well as the anticipated voice of the liberals (Air America Radio) which recently filed for bankruptcy.
When the Air America Radio parent filed for bankruptcy it had about 4 million dollars in assets and more than 20 million dollars in liabilities and these elite liberals think they can lead America.
We believe that most liberals are not elitists. We also believe they are good people but they are willingly misled by the elite liberals.
We ( Purge Congress, www.PurgeCongress.com ) believe it's time to dump the elite liberals and take back the Democratic Party for the good liberals, the real liberals in America.
Purge Congress can help.
PURGE CONGRESS IS ONTO CONGRESS!
Michael | 10.18.06 08:45 AM
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This is hysterical, as are most liberals. They have to take out LOANS to run their campaigns? Does this mean that they can't raise enough money using "We hate Bush" rhetoric with no ideas on how to run the country? Besides the old 50 year-old playbook that they can't update due to lack of BRAINS.
Former Liberal | 10.18.06 08:52 AM
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It seems to me that for a Party to be SO confident about an election that The Dems are scrambling. If they need a loan of 10Million dollars three weeks before an election they are in trouble. Especially if the prime usage of the funds is to "sure up" Menedndez's New Jersey Senate seat. Other than Pennsylvania, I don't think The Republicans will lose a seat, and I think they'll pick up New Jersey, in spite of the 10 Million...Happy Days are here again
Cam | 10.18.06 08:53 AM
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Doesn't this go against the "Pay as you go" philosophy the democrats have vowed to return to Washington? Interesting...
Brian | 10.18.06 08:56 AM
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Why don't they ask John Kerry for the money, I heard he is loaded!!!!! ( Rich wife )
Dennis Rick
Dennis Rick | 10.18.06 02:17 PM
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Washington at it's best. Borrow, borrow, borrow. No need to worry the tax payers can afford this. Put all in congress on our retirement plan and let's see how they change things.
Jerry | 10.18.06 02:27 PM
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A party who believes that going into debt is no matter in a quest to regain lost power, represents a certain lack of insight as to the core values that are reflected by such a move.
Jim | 10.18.06 02:32 PM
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Nice point Brian...
But since when has the consistency of Democrats ever existed, their only reliable stance is that on any given issue, they'll just take the opposite of conservatives for no other reason than it's the opposite of conservatives. The funny little reactive party...but, if they get the majority...it won't be quote so funny.
The Stout Republican | 10.18.06 02:35 PM
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to borrow money now, puts the DNC in a big hole which will make raising for funds for 2008 further behind- not a good idea.....
charlie | 10.18.06 02:36 PM
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This from a party bragging about a sweep. They are going to lose despite massive media favoritism.
kevin reed | 10.18.06 02:38 PM
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This is hysterical, as are most liberals. They have to take out LOANS to run their campaigns? Does this mean that they can't raise enough money using "We hate Bush" rhetoric with no ideas on how to run the country?
No, what it means is they aren't tapped into the oil companies, big pharma, banks and the Walton family like the Republicans are. Duh.
Pug | 10.18.06 02:43 PM
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Yes, a bunch of short-sighted idiots are posting comments here. Don't let that surprise you: This is the National Journal after all.
Do you know WHY the DNC is borrowing money? Because the GOP Boy-Love scandal has opened up races that looked like GOP strong-holds. We'd be dumb not to capitalize on this with increased spending.
Besides, candidates take out loans all the time. Kerry mortgaged his house to win the Democratic Primary, and it worked.
The truth is, $10MM is not a lot of money for a national party aparatus to borrow.
It's a lot better to borrow money and stay on the offense, than it is to retreat like the GOP is doing. Just two days ago they announced they were cutting funding for Senator DeWine in Ohio. Now *that* is scrambling.
Have a look here:
http://www.nytimes.com/2006/10/16/us/politics/16spend-graphic.html?_r=1&oref=slogin
It shows you where the parties are spending their money. Here's a hint: Dems are spending their money for offense, nearly all of it in open or GOP-controlled seats. Repubs are spending their money defending every inch of turf they have.
Everyone say it with me: Senate Majority Leader Harry Reid.
Shane | 10.18.06 02:46 PM
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Despite a 60% funding advantage, Big Business Republicans are on their heels. This loan is to capitalize on a unique opportunity to challenge Republican seats that were once assumed to be safe but are now very much in play.
Democrats are finally on the attack. Bad news for wingnuts: Americans are on to you.
Evan | 10.18.06 02:55 PM
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Despite a 60% funding advantage, Big Business Republicans are on their heels. This loan is to capitalize on a unique opportunity to challenge Republican seats that were once assumed to be safe but are now very much in play.
Democrats are finally on the attack. Bad news for wingnuts: Americans are on to you.
Evan | 10.18.06 02:55 PM
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Kean for Senate 2006!!!!!!!!!!
Kevin K | 10.18.06 02:57 PM
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According to all the polls, the Dems have all but won the Nov 7 elections. What are they doing taking out loans? Are the polls wrong?
pyramidcvv | 10.18.06 03:09 PM
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The Democrats feel they can easily pay off the loan right after (IF) they take over congress. As their leaders have touted, the first thing they will do is raise taxes. They'll imply introduce some pork in a bill to pay off their loan with our tax dollars.
Leo | 10.18.06 03:18 PM
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How many lies can you tell for an extra $5-10M?? And this doesn't include the hundreds of millions the AFL-CIO is spending to remove GOP incumbents from office which is not regulated by the FEC.
BP | 10.18.06 03:24 PM
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I thought democrats were against deficits.
Marc | 10.18.06 03:24 PM
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If this was Republican move, this would be the lead story for ABC, NBC, CBS, CNN et al. and the story would trump Darfur, Iraq, Afghanistan, N. Korea. Here's the NYT headline "Desperate Republicans Go Into Debt To Save Their Power in Congress". The reason for contribution reform is clear now. The Democrats are all for it because the unions can't rip people off like they used to in order to give to the liberal party. Who do they have left...Hollywood. They give because they want complete freedom to be as vile and self absorbed as they want to be, but they have their limits on giving. After all, they need their millions to buy 5 homes, 12 cars, and have servants to raise their children. They have a budget too!
MG | 10.19.06 07:54 AM
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Enjoyed reading the comments. Too bad the DNC has to take out a loan, bad way to get into office.
I just wished the whole Congress would get their act together and start working for the American people instead of all of this mud slinging and partisan politics, the place needs cleaned out.
Lets face it no matter who is in or out they will all retire with a very handsome pension, which they voted for themselves.
Renee | 10.19.06 08:06 AM
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Don't vote, it just encourages them to run!
Banks | 10.19.06 08:28 AM
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I buy my gas at Sam's Club. I guess I'll be targeted by the Demofascists if they win Congress.
Big Oil | 10.19.06 08:32 AM
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The comments here by those on the left are striking. "It worked for John Kerry". Uh, no, it didn't. "Big business Republicans are on their heels". or "They are tapped into big oil, pharma, banks". That tells me that successful people that know how to run very large corporations, and can turn a profit, Unlike AIRAMERICA, back like minded people that are successful at what they do. DNC has to borrow 10 million, while the RNC still has 100 million. It doesn't take a phd in Duh to figure that one out.
mike | 10.19.06 08:38 AM
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We are against Deficts!!!
I wake up every morning wanting John & Jane Q. Public to get smacked in the face with the fallout of the horrible mistake they've made by giving Republicans complete control over their federal government for the last 5+ years.
Hopefully, these heroic doses of GOP lawlessness, amorality, and criminality will inform their voting decisions on Nov. 7th and make them RUN to the ballot box to do SOMETHING to improve their government.
Stuff like this is needed because all too often, the Democrats don't show enough sack to call Republicans out on all the crap they've pulled since they grabbed the reins of power.
Scumbag Republican politicians getting thrown in jail makes the point in a much clearer way.
So, yes, it makes me happy to see this kind of thing, but not for the reasons you think...
Brian | 10.19.06 08:53 AM
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Less than 3 weeks before election day and I can see how the tide has turned. If the republican party is not the choice of the Americans how come they have over $1 hundred MILLION $ in their coffer. Who is giving all of this money to support the cause? Seems like more republicans than dems support their cause.This election will show the left wing media that they can not suppress the will of the people.
Sharon Gumble | 10.19.06 09:10 AM
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I thought the Dem's hired Dean because he was so good at raising money. Now he needs a loan?
Jim | 10.19.06 09:10 AM
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Sounds like a smart investment to me. Democrats know that "K St" lobbyists will contribute massively to whichever Party has a majority in the House or Senate. With Republicans in charge, the vast amount of money has gone to them -- in fact, Grover Norquist's "K St Project" has exploited this and tried to purge Democrats from lobbying firms, in order to restrict even more their funding. A loan to retake either house will get paid off nicely when Democrats when.
DC is a cesspool of legalized-corruption. Don't believe the "Corporate Social Responsibility" bullsh*t of corporations, they refuse to apply it where it matters most: lobbying. (Can you believe Exxon has the audacity to claim it has a "CSR" unit? ROFLMAO hahahahahahah)
a | 10.19.06 09:12 AM
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Shane,
You say
"Everyone say it with me: Senate Majority Leader Harry Reid"
It would just be another crook leading the Dems. You must be very proud
Mark | 10.19.06 09:22 AM
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Shane,
You say
"Everyone say it with me: Senate Majority Leader Harry Reid"
It would just be another crook leading the Dems. You must be very proud
Mark | 10.19.06 09:24 AM
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Takes money to fight the Repug lies and swift boating.They get free coverage at Fox and other Bush MSM.Plus big oil does their bidding like lowering the price of gas before election,think the price will remain lower if Repugs win????
hobojo | 10.19.06 10:57 AM
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You Repubs are hilarious! I'll tell you what. We won't take out the 5-10 mil dollar loan----if you would just get our deficit back to a Surplus. The way we had it before this Bozo of an administation took over.
Stacy | 10.19.06 01:46 PM
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I think they should just start charging a Democrat Party membership fee. They can think of it as a tax then it won't seem so bad.
Mike | 10.19.06 02:27 PM
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Ok all you right-wingers. The Republican party has been hijacked by a bunch of scamming, scheming, scandalous thugs who think might makes right and who are willing to take away our civil liberties to further their cause. Although there are some Republicans who have scruples, in most instances they are too cowardly to stand up to the party line. It is time for a change. I'm willing to make my donations for the cause to help defray the cost of restoring our democracy.
Helen | 10.19.06 02:44 PM
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Interesting to read the comments by the Dems here. Spin, spin, spin, baby! Or is it spend, spend, spend?!
Dee | 10.19.06 04:43 PM
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HAHAHAHAHAHAHAHAHA!!!
Democrats won 29 seats in the House, 6 seats in the Senate, and 6 governorships.
The Republicans didn't win a d-n thing.
Victorious Democrats | 11.17.06 03:14 PM
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