Wednesday, March 19, 2008
Open Question: Money--where did the Obama's US$1.65million in cash come from?
Senator Obama has had an inspiring rise to national prominence. However, this rise is dogged by a lack of crucial information, especially as related to the Senator and Mrs. Obama's finances. In a May 2004 profile in The New Yorker magazine, Senator Obama is quoted to say that in order for the Obama family to be able to survive financially during his 2004 run for the US Senate seat representing Illinois, he and Mrs. Obama had had to take out a second mortgage on their Hyde Park apartment. The Hyde Park area of Chicago might be described as Bohemian rather than well off or even upper middle class. The Senator is duly elected and in January 2005 takes his seat in the US Senate. In June 2005, the Obamas purchase for cash the home in which they now reside when in Chicago. This home cost US$1.65million. It was paid for in cash. This is a remarkable financial turn around from May 2004 when the Obamas needed a 2nd mortgage on an apartment worth at best US$300,000. There seems to be no explanation for how Senator and Mrs. Obama got the US$1.65million in cash to purchase their home. There is no increase in salary, no gifts, no inheritances, no book deals or additional royalties cited in the released financial records which could account for this inflow of funds which amounts to 8 times the couple's pretax declared income of 2004 and 10 times the salary paid to a US Senator (S162,5000 pa), which the Senator had only earned for 6 months prior to the acquisition of the new home. The Senator and Mrs. Obama have not addressed the issue of where the money came from which enabled them to purchase the lovely mansion in the best part of Chicago.