Reidblog [The Reid Report blog]

Think at your own risk.
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Saturday, March 10, 2007
The downside of plunder
The real estate market is in a world of hurt, as the free borrowing that fueled the supposed Bush real estate boom is looking more like the dot com bubble of old. It's being felt in the private housing market, but also in the high end real estate market, with a Nicki Hilton controversy thrown in to boot. Not a good look.

Meanwhile, the Walter Reed privatization scandal expands, as it becomes increasingly clear that the rush to privatize military veteran care nearly destroyed the jewel in the Army's crown, and even led to the kind of bribery and contract grubbing that you saw with the CIA and Department of Defense in the Dusty Foggo scandal, which of course, also involved members of Congress. From the Boston Globe:
GREENBELT, Md. --A man has pleaded guilty in federal court to participating in a kickback scheme involving contracts at Walter Reed Army Medical Center.

According to the plea agreement, from June 1999 to March 2002, Krachyna and an unnamed accomplice conspired to give kickbacks to a civilian contract specialist employed by the Army Medical Command. The unnamed official was responsible for procurement for the medical center.

The official helped Krachyna and his business partner secure government contracts worth as much as $1.4 million in exchange for a 10 percent cut, according to the plea agreement. Krachyna admitted paying the public official $10,000 to $30,000, according to the document.
So the contract to IAG Worldwide, a company whose directors include former KBR executives and former Treasury Secretary John Snow, meant that cleaning and facilities maintenance went to toadies who couldn't do the job, and other contractors came running for some of the gristle from the Bush table.

Way to spur an economic boom: plunder, theft, bribery and fraud, plus irrational exuberance and questionable lending processes. Only under Republicans.

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posted by JReid @ 7:17 PM  


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