Thursday, April 5, 2012

Newt Nukes His Creditors (It wouldn't surpirse Murray Rothbard)

In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday.

The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million. 

Gingrich was chairman of the group until May of last year, when he announced he was running for president. Since focusing his efforts on his presidential run, the "Gingrich Group" has struggled to raise money, leading to its eventual collapse.

As Murray Rothbard used to point out, these guys sell nothing but access, when they are removed from their "consulting" firms, the firms collapse. Here's Rothbard's take on Alan Greenspan's "consulting" firm, after Greenspan left it to join the Fed:

I found particularly remarkable the recent statements in the press that Greenspan’s economic consulting firm of Townsend-Greenspan  might  go  under, because  it  turns out that  what he firm really sells is not its econometric forecasting models, or  its famous numbers, but Greenspan  himself,  and  his gift for saying  absolutely nothing  at great length  and in rococo syntax with  no clearcut position of  any kind...
Greenspan’s real qualification  is  that  he can  be  trusted never  to rock  the  Establishment’s boat. 

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