Many politicians, during the course of running for political office, depend upon campaign funds from a variety of sources – personal funds, individual donors, and PAC’s.
The self-funding politician is in a rare bird. Possibly, accepting smaller, individual donations, keeps them on good footing with those who want to support them and want to feel like a relevant contributing constituent. Usually, this self-funding candidate has his own wealth to invest. Some actually self finance, with borrowed funds. There’s nothing necessarily wrong with this approach. You take out a loan and pay it back with interest. However, if a candidate has taken political stance of attacking big banks and crony capitalism, you would think that candidate would find an alternate source for a loan(s), other than the exact entity he demonizes in part of campaign talking points. Maybe a rich friend or relative would alleviate him/her from having to borrow money from an entity that this candidate so despises. Could it be that this candidate only uses the demonizing talking points for mass consumption, while really supporting the demonized entity.
So if Ted Cruz took out a loan from Goldman Sachs and a line of credit, against their assets, who cares, right? Well, come to find out, it seems Goldman Sachs actually has Ted Cruz on the hook for a favor. Why? How much money do you think Goldman Sachs just saved Ted Cruz – a seemingly indirect campaign contribution? Let see!
Cruz Loan – $1,430,000
If he were to pay back 3% annually, for 36 months, in an non-amortized loan, his annual interest would be approximately $43,000, times 36 months is approximately $130,000. And you can use various term and interest rate variables to see how much money Goldman Sachs potentially saved Cruz. Even if we are going to use a minimal term, at a minimal interest rate, Goldman has some favors to be paid back by Cruz. So my question is, what favors will Ted Cruz have to provide to his wife’s employer, Goldman Sachs?
On another note, why was Ted Cruz’s largest donor PAC contributor, Robert Mercer, a major player in the political PAC, American Crossroads, headed by none other than Mr. GOPe himself, Karl Rove? Just asking!