NYT: Hillary's Debts Could Burden Her For Years
Along with all the other historic firsts in this campaign cycle, Hillary Clinton may have just set another new milestone in her campaign: The largest presidential campaign debt in history. The New York Times notes this morning that Hillary's large debts, including $9.5 million in unpaid bills to vendors, could dog her for years with only a limited legal range of options on how to deal with it.
For example, any renegotiated debts would have have to be approved by the FEC, after having ensured that a good-faith effort was made to pay it off. And Hillary could end up spending a long time raising cash expressly for the purposes of paying off old bills, not financing a current or future campaign.















I know we're all supposed to be about sympathy and unity now - but I have to say it's hard to be sympathetic when these debts came about because of:
1) Fiscal mismanagement
2) Over-investment in a doomed effort; and
3) at the same time appeals were made for donors to pour money into a similarly doomed and mismanaged effort
June 10, 2008 9:10 AM | Reply | Permalink
Her inability to recognize when the cause was lost clearly demonstrated that we made the right decision. She will serve for many cycles to come as an example of how not to behave when you have lost a nominating contest. She will serve as a cautionary tale instead of a leader.
June 10, 2008 9:31 AM | Reply | Permalink
I think her candidancy was more of an anomaly. It would be difficult for any candidate besides Hillary Clinton to keep strong support after the defeats she suffered throughout Feb. Say what you want about her, but she had some really strong support.
There was definitely a mismanagement at play, but I think it was brought on more by Obama's prolific fundraising than anything. She simnply couldn't match it; she lost the war of attrition. Any other opponent, and Clinton would've had it made.
June 10, 2008 9:38 AM | Reply | Permalink
She was not running against anyother oponent. That is part of the reality she blinded herself to.
June 10, 2008 11:12 AM | Reply | Permalink
Exactly. Reality never had a chance in the Land of Clinton.
June 10, 2008 11:35 AM | Reply | Permalink
this is why there should be no sympathy. and this is not to mention the millions paid to that porcine idiot Penn.
June 10, 2008 9:44 AM | Reply | Permalink
Y'know, I was kinda on the fence about Obama helping out HRC with her campaign debt.... but not anymore.
I think this perfectly highlights the issue of Fiscal Responsibility... and which candidate can rightly claim fiscal responsibility.
BTW, anyone know how much McCain's Communications Director makes?
June 10, 2008 9:57 AM | Reply | Permalink
No need to hammer Hillary anymore. McCain is the target.
June 10, 2008 10:11 AM | Reply | Permalink
I agree. I feel bad for the vendors and suppliers who won't get paid but I'm simply not willing to pony up money for her vanity project. She incurred an additional $20 million in debt when it was clear that she had no way to overtake Obama in delegates. And she used that money to damage the nominee and further divide the party.
If her "army of 18 million" would send $2 each, they would wipe out her debt. But nooooooo. They (some of them) are too busy trashing Obama and recruiting others to vote for John McCain.
June 10, 2008 9:59 AM | Reply | Permalink
Since her over-long campaign cost me so much money, it's hard for me to feel terribly sorry for her. She should just reach into her bank account and pay off her debt. There's nothing wrong with being broke. I've been there many times. Who knows? It just might do her some good.
June 10, 2008 11:33 AM | Reply | Permalink
Oh, and she should stiff Mark Penn. Just give him the one-finger salute and tell him, "Squeeze it out of this."
June 10, 2008 11:37 AM | Reply | Permalink
Can't she just pay for it out of her own personal money?
June 10, 2008 9:17 AM | Reply | Permalink
MSNBC calculated that her cost per delegate was somewhere in the neighborhood of $110,000. "Big Money makes mistakes" says Neil Peart.
June 10, 2008 9:17 AM | Reply | Permalink
What was Obama's cost per delegate? He outspent her and didn't get that many more delegates.
June 10, 2008 12:34 PM | Reply | Permalink
maybe. but he won.
which means he got his money's worth, and she didn't.
June 10, 2008 12:41 PM | Reply | Permalink
He also did not spend money he had not raised.
June 10, 2008 5:18 PM | Reply | Permalink
She raised 40 million for her first senate run, and her husband banked close to a hundred million dollars in 7 years. I'm glad she's on board and I wish her well, but I can't muster an ounce of pity or worry for her on this.
I mean, I realize it's an inconvenience, but plenty of candidates have self-funded in the past.
June 10, 2008 9:18 AM | Reply | Permalink
BTW, when does the Clinton post mortem end?
June 10, 2008 9:18 AM | Reply | Permalink
I agree with the previous poster das2003
her current financial problem is the result of mismanaging her primary effort as well as staying in way too long. Lots of commentators were noting months ago how money is the Achilles heal of an faltering campaign. Short-term, she "proved" them wrong by continuing, but now it's time to pay the piper.
I'm certainly not the first person to point to her campaign as a sign of what her presidency would look like. Can anyone honestly say that these money woes are reassuring of her ability as a chief executive? "Experience"??? Right ...
June 10, 2008 9:18 AM | Reply | Permalink
Making financial decisions in a primary campaign is completely disanalogus to making financial decisions in the White House. These are two completely different tasks, which, in turn, require two different ways of thinking.
With that being said, my questions was always: Given the fact that her primary campaign was grossly mismanaged, if she ever were to get the nomination, how would she manage a general election campaign? That seems to be the more important question.
June 10, 2008 9:38 AM | Reply | Permalink
That's a very good point. Starting a GE campaign $30 million in the hole would be difficult to say the least...even against Grandpa Simpson.
June 10, 2008 9:59 AM | Reply | Permalink
Didn't she have a separate "war" chest for GE funded by her fat cats ?
June 10, 2008 10:13 AM | Reply | Permalink
Pay the vendors, stiff Penn, and as I said on another thread, have a fundraising YouTube event around watching her burn that yellow jacket with black trim and other classically shocking pieces from her wardrobe. Who wouldn't give 5 bucks to watch that!?
June 10, 2008 9:19 AM | Reply | Permalink
For real. SCREW Penn. I'm no fan of Hillary's, but that reptile deserves everything that's coming to him.
June 10, 2008 9:23 AM | Reply | Permalink
Yeah, it's hard to shed tears for her. Especially since the last few months of her campaign were pure vanity, bile and delusion.
But Obama can use this positively - by appearing at joint fundraisers to help retire her debt he can win over good will from (some of) those who are still pining for her.
Her Elton John Radio City fundraiser brought in $2.5 million. A few of those type events - done relatively early - and she'll not only be in better financial shape but she'll owe Barack big time, including maybe publicly backing off from VP.
I know Im dreaming about that last part. So sue me.
June 10, 2008 9:19 AM | Reply | Permalink
Just a couple of thoughts:
1. She ended her campaign on saturday. Are we still going to keep having 6 or more clinton stories on a daily basis. What next? Her vacation plans. It really is silly.
2. She has plenty of cash to pay the debt and she elected to continue on credit when she lost in February. That was her decision. Anyone else would have dropped out and not run up the debt. That's her problem. It's not news.
June 10, 2008 9:22 AM | Reply | Permalink
I agree with Michael A that the Clinton stories need to die down. The fascination with her failed campaign is turning somewhat morbid and negative, really. Some Clinton supporters believe Obama supporters are reveling in her downfall. And, to be fair, some Clinton supporters really don't know how to let go either.
I say this, but what stories do I usually click on first? Argh!
June 10, 2008 10:01 AM | Reply | Permalink
I agree with Michael A that the Clinton stories need to die down. The fascination with her failed campaign is turning somewhat morbid and negative, really. Some Clinton supporters believe Obama supporters are reveling in her downfall. And, to be fair, some Clinton supporters really don't know how to let go either.
I say this, but what stories do I usually click on first? Argh!
June 10, 2008 10:01 AM | Reply | Permalink
I don't feel sorry for her. The fact is, it was obvious even before Texas and Ohio that there was little chance she could win, but she continued to pour money into her attack machine against Obama, basically wasting tons of money for nothing. It was reckless. And the majority of that money she owes to herself, so I really don't care about that, she can just write that off as a loss, after all, it was her pride and thirst for power that got her into that position and the first place. Besides, she has more than enough money to just cancel that debt to herself. When you are as rich as the Clintons you can do things like that.
June 10, 2008 9:22 AM | Reply | Permalink
It keeps her in the headlines, which must be a silver lining from her point of view.
June 10, 2008 9:23 AM | Reply | Permalink
Well, it keeps her on TPM at the least.
June 10, 2008 9:25 AM | Reply | Permalink
NO COMMENT. DON'T FEED THE THE CLINTON TROLL THREAD CREATOR.
June 10, 2008 9:24 AM | Reply | Permalink
Well, Hillary can claim another categorical 'first', though I doubt she will want to go around and announce to the world that she created the biggest debt of any presidential campaign in history.
June 10, 2008 9:24 AM | Reply | Permalink
I think Hillary has to pay back Penn. Penn's firm is a subsidiary of Burson-Marsteller Worldwide, a British company. If B-M forgives the debt that would amount to an illegal foriegn contribution.
June 10, 2008 9:35 AM | Reply | Permalink
Eric,
For all your efforts to shill for Hillary, you do realize that this post shows her in a negative light? Don't you?
If you want to post Hillary centric posts, find some good news about her helping the democratic party's effort in winning the GE. Rest is all BS.
June 10, 2008 9:36 AM | Reply | Permalink
like the story about her urging her delegates to back Barack Obama.
June 10, 2008 9:57 AM | Reply | Permalink
There you go.
Kos has a diarist already covering it.
See Eric, if you looked hard enough you could report news instead hawking useless trivia.
June 10, 2008 10:04 AM | Reply | Permalink
But I think this is important--people who supported Hillary have a right to know how seriously mis-managed their contributions were. This may change their minds more than Hillary asking for their support.
June 10, 2008 10:08 AM | Reply | Permalink
No sympathy for her whatsoever. She made her bed...
June 10, 2008 9:39 AM | Reply | Permalink
Except I have sympathy for her vendors. Those people may starve if Hillary can't pay off her debt to them.
That's the problem.
June 10, 2008 10:05 AM | Reply | Permalink
Bye the way, does anybody remember the Clinton campaign's proclomation that they had raised $10 million within 24 hours after her Pennsylvania victory?
If so, was that ever debunked? Was it indeed true? Was the Clinton campaign lying? And where are the filings from April? Are they avaialable yet?
June 10, 2008 9:41 AM | Reply | Permalink
Yes, and it must be pointed out that unlike BHO - who until his prez. run did not have funds stashed like HRC - Hillary did not spread out her fat warchest on other dem races or down-ticket dems in her area. She did not do a lot of campaigning for Dems either...unless you count Bill and her swooping in to save Lieberman.
BHO hit the ground running as a US Senator, spreading out his money and time.
Not trying to pile on....just saying. She mismanaged a HUGE pile of money for totally cynical and personal reasons. Basically she was stashing prez money since the inception of her senate race. Just so she could blow it in one amazing, futile wad. And what is worse....the people who got stiffed in the most egregious manner were small businesses, caterers, florists, etc....Penn and the other big dollar types didn't get stiffed so bad plus they could tolerate only getting 4 mil instead of 6 mil, whereas a local caterer could be ruined by an HRC stiffarm.
Sometime, she is bound to wake up from this frenzied ME ME ME hangover and say to herself: "I did what? Oh God how can I show my face again."
I guess it might be one of the biggest, ever, political trainwrecks. Spinning it as a victory, and all of the superlatives that were ladled on her in the last months seem especially hollow and laughable.
On another post, someone was saying that according to some un-named research that BHO got 96% favorable coverage and HRC got 47% favorable coverage. I said, no way that with all the rerun rerun rerun of the Wright story, the muslim comments, the catholic priest, the bitter-gate, the nafta/canada story and the kitchen sink HRC was throwing....no way that BHO had 96% favorable "coverage"
I further said, do an experiment. Go yourself to an event...a contest. And long after you are eliminated, keep hanging around making lunges for the Big Prize...and see how much favorable coverage you get.
It is almost un-measurable how much damage HRC did to her reputation, the dems, her warchest, and her supporters when she decided that she could not win with votes/delegates and started a monthslong Quixotic windmill cage-match. She was spending money and supporters like a General who decides his army will all die a glorious death instead of retreating from a lost cause.
June 10, 2008 9:41 AM | Reply | Permalink
I believe the story the other day was that Obama may hit up the maxed-out donors to do something. Any dollar collected from anyone else means one less dollar available to fight McCain.
No need to beat up on Hillary, I guess, but this was the choice she made to pursue the "she's a fighter and doesn't quit" meme. Seems likely that a candidate that didn't have $10.4 million of her own money to spend on the campaign would have folded the tent earlier.
June 10, 2008 9:44 AM | Reply | Permalink
Before I'd contribute, I'd have to see her say that the other debts would be paid before she started repaying herself, and that she was going to buy that little boy his bicycle and toys back (I'll bet it wasn't his idea to sell them in the first place).
June 10, 2008 12:42 PM | Reply | Permalink
I think a significant amount of that debt is to herself isn't it? Isn't about half of it money that she loaned her campaign?
June 10, 2008 9:46 AM | Reply | Permalink
It would be great if she did right by the "hard working Americans", e.g. the vendors who provided services by ensuring that they got paid. Pay them...work her heart out to stand up for them in this process.
As for Penn, he was working as a private American consultant or he couldn't have been working on the campaign. Let him go back to his regular work portfolio.
June 10, 2008 9:46 AM | Reply | Permalink
Out of that 30 million she owes herself 11 million. The Clinton's are worth over $100 million. Why again is this a big deal?
June 10, 2008 9:48 AM | Reply | Permalink
Simple. How does this sound to you?
Bill does a corporate gig, deposits check into joint account, Hillary withdraws and deposits into campaign account.
Is there anything that strikes you as wrong here?
June 10, 2008 9:58 AM | Reply | Permalink
The Clintons' net worth (before making the loans) was more like $50 million, not $100 million. They grossed $109 million in the last eight years, but there were taxes, charitable contributions, and living expenses.
Not that $50 million is exactly at the doorway of the poorhouse, but it's still a big difference from $100 million.
June 10, 2008 12:40 PM | Reply | Permalink
BOYCOTT TPM THREADS UNTIL THEY GET THE MESSAGE THAT SENATOR OBAMA WON THE NOMINATION.
June 10, 2008 9:52 AM | Reply | Permalink
Doesn't the debt issue cut against some of her supporters' arguments for Hillary for the veep spot -- risk that "fiscal mismanagement" would become a McCain talking point?
June 10, 2008 9:52 AM | Reply | Permalink
BOYCOTT TPM THREADS UNTIL THEY GET THE MESSAGE THAT SENATOR OBAMA WON THE NOMINATION.
June 10, 2008 9:58 AM | Reply | Permalink
She still has some huge fundraising assets, namely herself and her husband. They will be able to raise millions more by attending fundraisers but at some point they will quietly convert their loans into contributions just because they're tired of rubber chicken.
June 10, 2008 9:59 AM | Reply | Permalink
Maybe the law has changed, but back when John Glenn ran for Pres. he was left with a bunch of debt and the FEC refused to grant him a waiver to pay it off out of personal funds, which he was not allowed to do without the waiver.
June 10, 2008 10:00 AM | Reply | Permalink
Many insist on telling us that she lost because sexim couldn't allow a woman to win...
Hillary is a privileged being. So much that, when out of money and deep in debt to small vendors, she was able to continue her campaign by pouring in millions of her own and her husband's money.
That is privilege -having that kind of money available to you-. That is elite.
What is she waiting for to pay all those vendors??
June 10, 2008 10:00 AM | Reply | Permalink
Hill and Bill liquidated their securities holdings into cash and cash-equivilents when this thing started, obstensibly to avoid conflicts of interest, but it was noted at the time that it also converted their fortune into a gigantic emergency campaign warchest. Even if they made another ten million dollar loan to the campaign to pay off the vendors, they'd still be worth at least fifty million bucks.
And I really don't think they'll even blink at the loss. I've said a lot of stuff about them throughout this campaign, but I will give them this: they are not the kind of people who perceive a difference between being worth fifty million and being worth eighty million.
Don't laugh. There are plenty of people who are worth more than they are who would view a thirty million dollar loss as a huge disaster and worry themselves sick over it. There are lots of filthy-rich old people people who can't be persuaded to start giving their money away to their kids before they die to reduce or avoid estate taxes--show them a plan to reduce their fortune down to five or six million and give the rest to their heirs or charity, and they invariably recoil in horror and say "but what if we need it?"
I just don't see Bill and Hill being those people. Drop an extra ten million to pay off vendors and carry an unrecoverable thirty million dollar debt on your books until you find an opportune moment write it off? I doubt they'll even flinch.
June 10, 2008 10:03 AM | Reply | Permalink
She was completely irresponsible to continue her campaign with this amount of debt. It's Bushian policy in action. I think the debt is yet another reason the super-delegates were never going to support her over Obama.
Man, 40 million dollars is a lot of kids bikes!
June 10, 2008 10:06 AM | Reply | Permalink
I feel bad for all those who supported and trusted her campaign even after the writing was on the wall, vendors and donors alike.
It's interesting to me the degree to which HRC was willing to go all-or-nothing. I mean steadfast conviction is an admirable thing, but the damage she did to herself financially, to her reputation and the money she gladly took from her (high school educated, low income) loyal supporters smacks of judgement compromised by power-fever.
Still, the great speech on Saturday seems to have erased a lot of political debt, but financial debt is a little less fickle.
June 10, 2008 10:13 AM | Reply | Permalink
Other multimillionaires self-fund their campaigns. I don't see why Clinton can't be expected to do the same. She should write off the debt to herself. Bill can make some more speeches, and Hillary can write a book, and everything will be fine.
And I agree with those saying that it's time to move on from the constant stories about Clinton. I know you'll miss them, but Obama is the nominee.
June 10, 2008 10:22 AM | Reply | Permalink
even winning politial campaigns incur debt. this has been the most expensive presidential primary race in history- you would imagine the loser of that race would have big chunk of debt to show for it. i honestly don't think that this debt will hamper sen. clinton for years- she and her husband have plenty of money, plenty more coming, and plenty of ways to raise that money back. i'm not worried about it, and neither should anyone else.
June 10, 2008 10:52 AM | Reply | Permalink
1) Every dollar that is raised to pay off Hillary's profligate campaign debt is a dollar that could go to the DNC for all Democratic candidates in all states.
2) Hillary could pay her small vendors today, and should do so. Many, having already paid their wholesale suppliers, need cash to keep working. Those who used credit from their wholesalers now have a domino problem, in that Hillary's failure to pay is impacting their wholesalers as well as the retailers.
June 10, 2008 11:05 AM | Reply | Permalink
No sympathy here. They did it with their eyes open. They chose to pay obscene amounts of money to shysters like Mark Penn. And all it will take is a few speeches by Bill to make it back.
I'm glad Hillary seems to have come around -- I thought her speech Saturday was great -- and I have no interest in piling on, but no, I'm not feeling sorry for their financial straits.
June 10, 2008 11:05 AM | Reply | Permalink
This fiscal irresponsibility to serve a raging ambition is the most damning reason I can think of to show why Hillary Clinton should not have been POTUS or Commander In Chief. You need cool, rational thought in the White House -- and Hillary couldn't control herself with respect to reality.
She literally bet the farm and that shows a terrible judgment on her part. What's worse is that she is now a shining example of why so many people own homes that they couldn't have afforded in the first place. She, like them, is expecting a bailout!
June 10, 2008 11:29 AM | Reply | Permalink
PS This is the *second* time she has mismanaged this type of money -- the first was in her Senate reelection campaign. This is obviously not a one-time event with her.
June 10, 2008 11:30 AM | Reply | Permalink
I don't know why $100 Mill Hill can't just pay the debts off. She's got the money lying around...
9 million is nothing to uber-rich elites like her and bill...
June 10, 2008 11:42 AM | Reply | Permalink
I'm sure that Hillary felt that if she kept throwing money into the campaign she could win and there would be no problem paying off any amount of debt she ran up.
Her tactics reminds me of the movie A Big Hand for the Little Lady in which Joanne Woodward ends up playing a poker hand for a huge amount of money against a big man in town who had cheated several people in town. She runs out of money and asks for a loan from the town banker on the basis of her hand. The banker is one of the people cheated by the BMIT, and offers her an unlimited line of credit based on her hand.
The BMIT eventually folds and it turns out to have been a huge scam by several people, including the banker, to recover the money they were cheated out of. The poker hand itself was an ordinary hand.
The only difference here is that Obama was able to call Hillary's hand and she was holding a busted flush.
June 10, 2008 12:31 PM | Reply | Permalink
Bristaberry is right: Cut Clinton some slack. Presidential campaigns are big projects, and sometimes big projects go over budget.
And she very nearly won, which means she didn't exactly "waste" the money.
Going into debt to lose by tiny margin isn't so bad. If she had lost by a tiny margin and still had money in the bank... *that* would be gross mismanagement.
June 10, 2008 1:49 PM | Reply | Permalink
She didn't very nearly win. She lost back in Feb when Obama had ELEVEN consecutive wins. She lost when she came in 3rd in IA, as she was never ahead in delegates after that.
This was a contest for delegates and she did not come close to winning, UNLESS you change the RULEs and try to claim a different criteria for winning.
This contest was about delegates earned not votes just like a football game is about TD's and FG's as points on the board NOT yards gained.
Hillary tried to cheat in the end talking about votes mattered they didn't it was about delegates just like a football game is not won based on yards gained but on points on the board.
There was no tiny margin..it was GROSS mismanagement by any measure based on the RULES of the game. Only by changing the rules and giving false credence to an arbitrary measure introduce in the middle of the game can anyone suggest it was a close race. i.e. cheating
So stop with that is was close...she wasn't EVER close which is what makes the vast amount of her debt even more irresponsible.
Gross mismangagement and fiscal irresponsible to a magnitude of which a presidential race has never seen. Yes, it was historic and she should have recognized that and quit while ahead when faced with the prodigious amounts of money her opponent was raising.
It just shows a lack of judgment..where most folks know when the game is over and they have lost..she didn't ...she just kept going and racking up a mountain of debt in a futile attempt to demonstrate her chutzpah.
Gross mismangement no mistake about that.
She earned the debt..let her pay it. Especially given how she tarnished, demeaned and smeared the winner along the way.
June 10, 2008 2:57 PM | Reply | Permalink