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Jamie Gorelick received $779,625 in improper bonus from Fannie Mae
OFHEO ^ | September 22, 2004 | Office of Federal Housing Enterprise Oversight

Posted on 09/23/2004 3:31:49 PM PDT by Dems_R_Losers

Federal regulator OFHEO yesterday released a damning report on accounting irregularities at mortgage finance giant Fannie Mae. One critical finding was that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses. The report states:

1998 Salary and Bonus of Senior Fannie Mae Executives

Officer Title Salary AIP Award/Bonus
James A. Johnson Chairman and CEO $966,000 $1,932,000
Franklin D. Raines Chairman and CEO Designate $526,154 $1,109,589
Lawrence M. Small President and COO $783,839 $1,108,259
Jamie Gorelick Vice-Chairman $567,000 $779,625
J. Timothy Howard EVP and CFO $395,000 $493,750
Robert J. Levin EVP, Housing and Comm. Develop. $395,000 $493,750


TOPICS: Crime/Corruption; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: corruption; democrat; fanniemae; gorelick
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Note also that James Johnson headed John Kerry's VP search team.
1 posted on 09/23/2004 3:31:49 PM PDT by Dems_R_Losers
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To: Dems_R_Losers

Keanu Reeves voice: "WHOAA..."


2 posted on 09/23/2004 3:32:25 PM PDT by Extremely Extreme Extremist (EEE)
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To: Dems_R_Losers

BUMP


3 posted on 09/23/2004 3:32:58 PM PDT by Extremely Extreme Extremist (EEE)
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To: Dems_R_Losers

I forgot to add that the report says that had Fannie Mae followed proper acciunting procedures, there would have been no bonuses for anyone in 1998. They misstated income by over $125 million in order for these folks to get their bonuses. Jamie Gorelick was EVP and General Counsel while this was going on.


4 posted on 09/23/2004 3:34:25 PM PDT by Dems_R_Losers (Proud to be a Reagan Alumna!)
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To: Dems_R_Losers

Powder..Patch..Ball FIRE!

THATS GONNA LEAVE A MARK!!!!!!!!


5 posted on 09/23/2004 3:35:05 PM PDT by BallandPowder
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To: Dems_R_Losers

Don't be dissin' Jamie - she's gonna be the new AG in a Kerry administration.


6 posted on 09/23/2004 3:35:16 PM PDT by RtWngr
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To: ninenot

Worth a look


7 posted on 09/23/2004 3:36:37 PM PDT by raybbr
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To: RtWngr
Not now she ain't. And Jim Johnson won't be Fed Chairman, and Frank Raines won't be Treasury Secretary.

Hehehehehehehee

8 posted on 09/23/2004 3:36:47 PM PDT by Dems_R_Losers (Proud to be a Reagan Alumna!)
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To: Dems_R_Losers

Damn! How can I get one of those jobs!


9 posted on 09/23/2004 3:37:57 PM PDT by martinidon ("who would Saddam and Osama vote for in this years election...")
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Ya know, I'm starting to wonder what the outcome of the MSM media will be now that it's been "Outed" that we FReepers are ALWAYS watching them. Their only hopes rode on the idea that if they say just a little bit about something now and then that nobody would be paying attention. Now that that illusion is shattered, what will be their avenue now?

Hide the news, perhaps?


10 posted on 09/23/2004 3:38:09 PM PDT by RandallFlagg (<a href="http://www.michaelmoore.com" target="_blank">Hatriotism)
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To: Dems_R_Losers

And of course, Ms. Gorelick will face severe consequences for her actions, just as soon as Sandy Berger's case is over.


11 posted on 09/23/2004 3:38:58 PM PDT by raptor29
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To: Dems_R_Losers

Hmmm. What else did they get?


12 posted on 09/23/2004 3:40:54 PM PDT by mabelkitty (Watch for a CBS employee in a trench coat going by DeepWord.....)
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To: RtWngr

http://www.michellemalkin.com/

THE FANNIE MAE & FREDDIE MAC RACKET
By Michelle Malkin. September 23, 2004
The Washington Post notes a new report slamming shoddy accounting practices at Fannie Mae, the behemoth, federally chartered mortgage finance company that receives a host of government benefits and exemptions from normal securities regulations:

Though it didn't quantify the effect of what it called pervasive misapplication of accounting rules on the company's books, the report by the Office of Federal Housing Enterprise Oversight cited one instance in 1998 where the company inappropriately deferred $200 million of estimated expenses, which enabled management to receive full annual bonuses. Had Fannie recorded the expenses in 1998, no bonus would have been paid, the report said.
The report also detailed numerous transactions over several years where it said Fannie Mae management intentionally smoothed out gyrations in its earnings to show investors it was a low-risk company. Fannie "maintained a corporate culture that emphasized stable earnings at the expense of accurate financial disclosures," regulators said in a letter to the company.

Chief executive Franklin D. Raines and the board of directors were not singled out for blame, but the report criticized "a culture and environment that made these problems possible." It did name J. Timothy Howard, the company's vice chairman and chief financial officer, saying he "failed to provide adequate oversight" of key control and reporting functions and had jobs in which he both set earnings targets and then the accounting policies that could be used to meet them.

The report said company management didn't adequately investigate allegations of irregularities by a former employee, Roger Barnes, who couldn't be reached for comment last night. It said his concerns were "substantive" and his cooperation with regulators important to their examination.

The findings echo those made last year about Freddie Mac, the other large government-chartered mortgage finance company. Regulators, who launched their Fannie Mae inquiry after the Freddie Mac problems came to light, found that Fannie failed to follow the rules in accounting for complex financial instruments known as derivatives, which the company uses to hedge against movements in interest rates. Much of rival Freddie Mac's accounting problems involved accounting for derivatives.

That probe resulted in a $125 million fine and a management shake-up at Freddie Mac.

The two companies were chartered by the government to provide a steady flow of funds for home mortgages. To do that, they borrow money from investors and buy mortgages from banks and other lenders. They also package mortgages into securities for sale to investors. Together they help finance half the home mortgages in the country.

The report's findings that Fannie lacks sufficient internal controls and that its accounting policymaking is "dysfunctional" added to the regulators' concern about the company's safety and soundness.

Federal Reserve Chairman Alan Greenspan and Treasury Secretary John W. Snow have called for tougher oversight of Fannie and Freddie because they worry that, given the huge scale of their operations, serious financial troubles at the companies could put nation's financial system at risk. Though the government disavows any responsibility for the companies' debts, public and private analysts say the government could be called upon to bail them out in a crunch....


My friends at CEI have been warning about such a nightmare scenario for years. Unfortunately, the mainstream press that puts Martha Stewart in the daily headlines has given short shrift to the Fannie/Freddie racket. Here's a bit of what I wrote about the problem last year:

Clothed in politically correct fashions ("Catch the dream," beckons Freddie Mac's program to boost minority home ownership; a "leader in diversity," brags a Fannie Mae press release), these public-private hybrids are two dangerous pigs feeding at the federal trough. Congress created Fannie Mae (nickname for the Federal National Mortgage Association) in 1938 to bolster home ownership during the Depression. Three decades later, it was partially privatized, but retained a host of government benefits. In 1970, Congress spawned Freddie Mac (nickname for the Federal Home Mortgage Corp.) to provide a lending competitor to Fannie Mae. Both entities expand the pool of money for home purchasers by snapping up loans that lenders make to homebuyers, and then converting those loans into relatively safe mortgage-backed securities that are attractive to investors.
So, what's wrong with this picture?

As Fred Smith, president of the Washington, D.C-based Competitive Enterprise Institute, has noted, these financial beasts are a textbook example of "profit-side capitalism and loss-side socialism." When things go right for Freddie Mac and Fannie Mae, they keep the profits. But when things go wrong, taxpayers -- not just private shareholders, managers, and employees -- will be on the hook.

Freddie Mac and Fannie Mae each receive $2.25 billion lines of credit with the U.S. Treasury. These special pipelines give the institutions an implied federal guarantee available to no other private sector competitors in the mortgage market. That protection makes them immune to the costs normally associated with riskier and riskier behavior. Moreover, Fannie Mae and Freddie Mac are not required to pay state and local income taxes. In addition, the standard for how much money the government requires them to keep on hand in case homebuyers default on their mortgages is lower for Freddie Mac and Fannie Mae than for fully private banks and thrifts. The two corporations receive an estimated $10 billion a year in hidden taxpayer subsidies.

Political appointees to the companies' boards pocket millions in stock options to bolster support on Capitol Hill. Clinton-appointed board members at Fannie Mae include Marc Rich lawyer Jack Quinn and Janet Reno's lieutenant at the Justice Department, Jamie Gorelick. At the helm of Fannie Mae is another Clinton appointee, Franklin Raines, who was paid more than $4 million and had almost $6 million in unexercised stock options in his first year at the helm. Cheerleaders in both major political parties have opposed privatizing Fannie and Freddie.

If Martha Stewart is the face of capitalist excess, Fannie Mae and Freddie Mac are the poster children for government-sponsored gluttony. The potential fall of Freddie Mac or Fannie Mae could rival the savings and loan collapse of the 1980s. Too bad the Martha bashers, blind to the far greater catastrophes of market socialism, won't pay attention until it's too late.


13 posted on 09/23/2004 3:43:25 PM PDT by Lori675
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To: RandallFlagg

This has to be sent to Neal Cavuto at Fox News. This is so corrupt! And this scheming, conniving, unspeakable woman was on the 9/11 commission?

Despicable!


14 posted on 09/23/2004 3:43:36 PM PDT by Judith Anne (First we were digital brownshirts then we were pajamahadeen, now we're the piranha of the internet)
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To: Dems_R_Losers

OUCH!


15 posted on 09/23/2004 3:51:49 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: Judith Anne
Gorelick covered up EVERYTHING for EVERYBODY. SHe wrote the book.


"WE also finally have our own copy of Gorelick's book "Destruction of Evidence"
and we will NEVER, NEVER, NEVER, be fired again by anyone.
"


THE OBSTRUCTION OF THE OKLAHOMA BOMBING GRAND JURY INVESTIGATION,
The Mysterious Jamie Gorelick Phone Call
By David Hoffman,Sun Sep 14 12:10:57 1997


On Aug. 22, 1996, just before the Democratic National Convention,
Ms. Gorelick oversaw a critical Justice Department meeting with the FBI.
mmediately after this meeting, as it happened,
all serious inquiry into the fate of TWA 800 came to an end.

Gorelick was instrumental in the corruption of TWA Flight 800 terrorism investigation
Did Clinton appointee corrupt Flight 800 probe?


MORE?
http://www.freerepublic.com/focus/f-news/1117579/posts
GORELICK GATE - various FR links




Consider: If Gorelick, Clarke and Clinton had been completely HONEST
to the American public about the Islamic-crashed airplanes, like TWA800, in the 90's
or the other Islamic terror attacks, then Americans WOULD have been on alert on 911
and would have had the opportunity to prevent the 911 Atrocities.


Who's Who on the 9/11 "Independent" Commission

"According to a 1998 Senate testimony of former CIA director James
Woolsey, powerful financier Khalid bin Mahfouz’ younger sister is
married to Osama bin Laden,. (US Senate, Senate Judiciary
Committee, Federal News Service, 3 Sept. 1998, See also Wayne
Madsen, Questionable Ties, In These Times,12 Nov. 2001 )
Bin Mahfouz is suspected to have funneled millions of dollars to the Al
Qaeda network.(See Tom Flocco, Scoop.co.nz 28 Aug. 2002)
Now, "by sheer coincidence", former New Jersey governor Thomas
Kean has business ties with bin Mahfouz and Al-Amoudi.
Thomas Kean is a director (and shareholder) of Amerada Hess
Corporation , which is involved in the Hess-Delta joint venture with
Delta Oil of Saudi Arabia (owned by the bin Mahfouz and Al-Amoudi
clans)...
Now you would think that being a business partner of the brother in
law and alleged financier of "Enemy No. 1" would also be considered a
bona fide "conflict of interest", particularly when your mandate --as
part of the 9/11 Commission's work-- is to investigate "Enemy No. 1".
"(Michel Chossudovsky, New Chairman of 9/11 Commission had
business ties with Osama's Brother in Law,
Centre for Research on Globalization, December 2002 )

16 posted on 09/23/2004 3:54:32 PM PDT by Diogenesis (Cuius rei demonstrationem mirabilem sane detexi hanc marginis exiguitas non caperet.)
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To: Diogenesis

Bump for your excellent post.


17 posted on 09/23/2004 3:56:33 PM PDT by Judith Anne (First we were digital brownshirts then we were pajamahadeen, now we're the piranha of the internet)
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To: Dems_R_Losers

I hope someone is preparing some invoices.


18 posted on 09/23/2004 3:58:05 PM PDT by NonValueAdded (You never know what you'll get when you troll through a newsroom with a phony document.)
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To: RtWngr

Well maybe with all that money she can go out and buy some self respect and a personality for good measure.


19 posted on 09/23/2004 3:59:25 PM PDT by cubreporter (-I trust Rush...he will prevail in spite of the naysayers.)
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To: Dems_R_Losers
I always wondered what motivates people like Gorelick do all the horrible and evil things they do on behest of the "rat party."

Like put a wall up to prevent properly protecting our nation from terrorist attacks to cover up the Chinese Military's bribery of the democrats and the Clintons.

Now I know.

20 posted on 09/23/2004 4:08:00 PM PDT by FormerACLUmember (Free Republic is 21st Century Samizdat)
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To: Dems_R_Losers

You may think dems are losers, but those dems seem to have hit the jackpot. Is there any question as to why they want to take control of government?

For the curious, check to see how much they contributed to democrats from those salaries.


21 posted on 09/23/2004 4:09:52 PM PDT by billhilly (If you're lurking here from DU (Democrats unglued), I trust this post will make you sick)
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To: Dems_R_Losers
Funny how, during the Clinton presidency, large companies like Enron, WorldCom, et al miss stated earnings to rip off investors and now it comes out that our own Gov under the Clinton watch miss stated financial health for personal gain (huge bonuses) thus ripping off tax payers. Not one of Clinton's cabinet members is in jail for any of this. Any bets on whether Clinton did this in Ark while Gov of that state? Also, why do Gov employees get bonuses anyway? I work for a public agency and employee bonuses are against the law.
22 posted on 09/23/2004 4:27:51 PM PDT by drypowder
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To: Dems_R_Losers

Book'er, Dan-o.


23 posted on 09/23/2004 4:28:22 PM PDT by mewzilla
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To: Dems_R_Losers

now this is the kind of transfer of wealth/income that barbara streisand believes in


24 posted on 09/23/2004 4:34:39 PM PDT by alrea (Help Wanted: New Jersey Director, Homeland Security. Must be willing performer, and good looking.)
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To: Dems_R_Losers
Crosslinked:

-GORELICK GATE: Developing--

25 posted on 09/23/2004 4:35:11 PM PDT by backhoe (Just a Keyboard Cowboy, ridin' the Trackball into the Dawn of Information...)
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To: Dems_R_Losers
At Fannie Mae, the home symbolizes who we are, too. Our public mission, and our defining goal, is to help more families(LIKE OURS) achieve the American Dream of (SCREWING LOW INCOME PEOPLE) homeownership.

We do that by providing financial products and services that make it possible for low-, moderate-, and middle-income families (TO PAY FOR OUR SALARIES AND BONUSES)to buy homes of their own. Since Fannie Mae began in 1968 we have helped more than 63 million families achieve the American Dream of homeownership (AND MAKE US RICH).

26 posted on 09/23/2004 4:35:56 PM PDT by kcvl
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To: Dems_R_Losers

BUMP


27 posted on 09/23/2004 4:38:58 PM PDT by True Capitalist
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To: cubreporter

Well maybe with all that money she can go out and buy some self respect and a personality for good measure.

And maybe some plastic surgery as well.


28 posted on 09/23/2004 4:40:21 PM PDT by conshack
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To: Dems_R_Losers
Prior to joining Fannie Mae, Mr. Johnson served as founder and president of Public Strategies, a strategic consulting firm in Washington, D.C., and worked for the Carter Administration as executive assistant to Vice President Walter Mondale.
29 posted on 09/23/2004 4:42:12 PM PDT by kcvl
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To: Miss Marple; Howlin; PhiKapMom

fyi


30 posted on 09/23/2004 4:42:56 PM PDT by Diddle E. Squat
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To: RtWngr

Kerry administration ? Drop the crack pipe.


31 posted on 09/23/2004 4:44:12 PM PDT by John Lenin
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To: NonValueAdded

as in "aren't they going to haver to give it back?"


32 posted on 09/23/2004 4:47:38 PM PDT by RedEyeJack
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To: Dems_R_Losers

I wonder how many other Clintonistas got big phony bonuses while under his administration? Probably all of them. Now that the cat is out of the bag, does she plan on paying the money back?


33 posted on 09/23/2004 4:47:43 PM PDT by RepublicanHippy
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To: martinidon

"Damn! How can I get one of those jobs!"

Sell your soul


34 posted on 09/23/2004 4:48:34 PM PDT by Dad2Angels
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To: Dems_R_Losers

The corruption, extortions, theft, bribes, graft and swag of the modern Democrat administrations have Grover Cleveland spinning 72,000 rpm in his grave. And make Tammany Hall's best look like the rankest of pikers.


35 posted on 09/23/2004 4:54:41 PM PDT by bvw
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To: zip

ping


36 posted on 09/23/2004 4:55:47 PM PDT by Mrs Zip
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To: Dems_R_Losers

"Righteous bucks!"

37 posted on 09/23/2004 4:57:27 PM PDT by Doomonyou (Molon Labe! FMCDH!)
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To: mewzilla

Send her to Guantanamo


38 posted on 09/23/2004 5:35:42 PM PDT by rdl6989
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To: Diddle E. Squat

Thanks for the ping! This is unbelieveable -- she keeps turning up everywhere and now we find out she received a bonus when she shouldn't have. How much more fraud is out there that involved Clintonites?


39 posted on 09/23/2004 5:37:56 PM PDT by PhiKapMom (AOII Mom -- Oklahoma is Reagan Country and now Bush Country -- Vote for Dr. Tom)
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To: Dems_R_Losers

BUMP


40 posted on 09/23/2004 5:40:34 PM PDT by Dante3
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To: Mrs. B.S. Roberts
Oh. Ping. Oh yeah. Yer gonna love this.


41 posted on 09/23/2004 5:44:37 PM PDT by Bloody Sam Roberts (Goonight, Mrs. Calabash...wherever you are.)
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To: Dems_R_Losers

That is OBSCENE!!!


42 posted on 09/23/2004 5:47:02 PM PDT by Ann Archy (Abortion: The Human Sacrifice to the god of Convenience.)
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To: Lori675
Chief executive Franklin D. Raines and the board of directors were not singled out for blame, but the report criticized "a culture and environment that made these problems possible."

Oh, I'd go further than that. I'd be willing to bet that every one of the Board of Directors conspired to structure things so they'd all get bonuses...and more

43 posted on 09/23/2004 5:47:22 PM PDT by Bloody Sam Roberts (Goonight, Mrs. Calabash...wherever you are.)
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To: Dems_R_Losers

This is disgusting. This corruption requires tar, feathers, and a rope.


44 posted on 09/23/2004 5:47:31 PM PDT by Rightwing Conspiratr1 (Lock-n-load!)
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To: Dems_R_Losers

Oooops.


45 posted on 09/23/2004 5:48:13 PM PDT by pointsal
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To: Dems_R_Losers
Wow! Who the hey would ever know about this without a Freeper around...brilliant find.

I am ignorant of economics and their institutions, so may I ask: Is Fannie Mae a private, governement or combination institution? Those numbers seem to be private-side numbers...I would imagine civil servants can't make it to that bonus stratosphere.

46 posted on 09/23/2004 6:01:21 PM PDT by Pharmboy (History's greatest agent for freedom: The US Armed Forces)
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To: Lori675

Thanks for posting that. I just posted the juicier tidbits over on DU. Just the facts. No commentary. I'll go back in a while to see if I'm banned or if they're in a tizzy or what.


47 posted on 09/23/2004 6:16:59 PM PDT by Bloody Sam Roberts (Goonight, Mrs. Calabash...wherever you are.)
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To: Dems_R_Losers

Why am I not suprised!


48 posted on 09/23/2004 6:20:48 PM PDT by AEMILIUS PAULUS (Further, the statement assumed)
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To: cyborg

I had to show you this...

49 posted on 09/23/2004 6:23:38 PM PDT by Pharmboy (History's greatest agent for freedom: The US Armed Forces)
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To: Pharmboy

LOL


50 posted on 09/23/2004 6:25:59 PM PDT by cyborg (http://mentalmumblings.blogspot.com/)
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