Schadenfreude - Deal's deal

Like most of us, I am not above a bit of glee at the misery of mine enemies. So today's headlines about Republican gubernatorial candidate Nathan Deal's financial difficulties gave me that feeling: it couldn't have happened to a more deserving "corrupt bigot," to use the phrase that the president of the Georgia Log Cabin Republicans did in an email to me about Deal's smear of the wonderful Youth Pride group that provides vital social and supportive services to gay youth. This gay Republican is the treasurer of the Board of Youth Pride, and he was deeply offended by Deal's ugly smear attack on his primary opponent, simply because as a former county commissioner she had voted for funds to support this group. Deal was shamelessly playing the anti-gay vote card.

If you aren't a local newspaper reader, here's the gist of his current financial difficulties:

Back in 2005, Deal and his wife invested $2 million to help their daughter and son-in-law start an outdoor sporting supply business; they also co-signed loans for the business. The business has failed, the daughter and son-in-law have declared bankruptcy, leaving the Deals responsible for the loans as well as having lost their $2M investment. Their obligations exceed the total value of their assets, chiefly two homes. They are effectively insolvent. And the loans come due just after Deal would take office in January, if elected.

There is no good solution from his political standpoint. He could declare bankruptcy himself. Or he could sell his homes and negotiate with the banks to forgive the remainder of the loans. If a benefactor came forward to lend him the money, that would raise serious questions of quid pro quo.

Aside from the political fallout of how he handles this, it seems to be a serious error in judgment for someone who wants to be responsible for the entire financial management of the state of Georgia. One doesn't always use the best judgment when indulging a family member who asks for financial help. But it goes beyond that. As the business was failing, they turned to a local bank for refinancing and were able to take advantage of a failing bank to get loans without sufficient collateral. Was there undue influence there? The bank has since failed and been taken over by someone else.

Any way you slice and spin this, it looks bad for the little boy I knew in my home town of Sandersville some 60 years ago and whose mother taught the other second grade class across the hall from mine. Mrs. Deal was a nice lady but not as pretty as my teacher, Miss Perkins. But she was also a straight arrow type disciplinarian who demanded her students do the right thing. I think she would spank Nathan, first for smearing a worthy organization and possibly endangering the kids who go there; and second for being so irresponsible with money. And this on top of the questionable influence-wielding for the benefit of his own car salvage lot business that had him under investigation by the House ethics committee just before he resigned to run for governor.

Bottom line: he was under investigation for one business deal of his own and now he either has to default on loans or declare bankruptcy for another bad business judgment call.

Shame on you , Little Nathan. You are not fit to be our governor. Big advantage to his Democratic opponent and better man, Roy Barnes.

Ralph