It is not often I write about Obama in positive terms but this time I must. $400,000 for a one hour speech to Wall Street is the price they’re willing to pay. If you’re reading this, throw away your prejudices and political affiliation and ask yourself point blank “if I was offered $400k as a speaking fee, would I take it?” I’m guessing most of you would. You can call Obama a sell out or whatever for speaking to those he despised but he is not dissimilar to any other world leader cashing in on the speaker’s circuit. Bill Clinton must be beside himself at being 50% off Obama’s rates or is that there is a bubble in public speaking?
Democrat Senator Elizabeth Warren was outraged at how Obama could be so out of touch with battlers. What a shame the Democrats didn’t figure out the mass increase in poverty, welfare and wealth divide over his 8 years, not to mention previous administrations. The signs have been there for ages.
The sad fact is that being POTUS gives a huge wealth of opportunities, whether it be wakebording behind Sir Richard Branson’s mega yacht in the Bahamas or generous pay packets after dinner speeches after office.
Why would an investment bank pay $400,000 for Obama? Simple. The bank gets to invite all the top drawer C-level management clients which hopefully leads to multi million dollar transactions.
We can bitch and moan at the levels of hypocrisy or acccept that centuries if not millennia of business practice has been done this way. Influence is everything. Relationships are everything. It’s not what you know but who you know. Surely kings in ancient times were showered with presents and favours by local lords pressing for greater influence to dominate other lords. In some cultures marrying one’s offspring off to more influential circles was deliberate attempt to gain favour. The Clinton Foundation made an industry out of pay-for-play. Why are we surprised?
I’ll be the first to argue that the gap between the haves and have nots has reached unsustainable levels but do not expect that Obama will worry about that. What worries me is we have a system where too many ‘have nots’ are living like ‘haves’ (e.g. Australia’s housing boom where mortgage debt:GDP is 180%) in this low interest rate world meaning risk is priced at next to nothing when in reality it should come with a high visibility vest and flashing LEDs warning of its toxicity, flammability and volatility.
How is the imbalance redressed? That is not an overnight affair. With poverty levels around the world at all time highs, debt at record levels, deficits at unsustainable levels and public service jobs growing to hide the fact the establishment has lost control of a supertanker which is ablaze the reset will actually put a growing number of people into this harsh reality. From that we’ll have our hand forced. It will be ugly.
So I ask the question again. If you were offered $400,000 to speak for the sake of protecting your family would you do it? Of course you would but then the most common line I use for people looking for investment returns is simple – “stop worrying about the return ON your money but the return OF it.”