ACORN: One of the largest multi-city community organizing group that campaigns for better housing, schools, neighborhood safety, health care, job conditions, and more. This is a huge voter organizing group that has significant ties to Obama and the democratic party. They also were some of the developers of such novel ideas as no money down for homes and pushing cities to mandate areas for historically impoverished areas etc. They've been novel at pushing banks and institutions to promote loans to minorities and historically underrepresented etc. They were able to get a piece of Bush's housing bill and now some democrats are pushing that ACORN and its affiliates recieve a portion of the gains from the bailout investment. If this gets thrown into the bill it would be a travesty. I've been reviewing a number of the additional pieces that may be thrown into the bailout package and this would be HORRIBLE. Republicans and Democrats need to view this as a way to stabilize the economy, not throw in a bunch of extra things to line our own votes.
Better housing, schools, neighborhood safety, health care, job conditions, and more would definitely be a travesty.
Sam, do you support the democrats' attempt to hide an ACORN slush fund in the bailout agreement? [rquoter]Dems Want to Reward Scandal-Tarnished "Community Organizing" Group in Economic Rescue Bill House GOP Fights to Remove ACORN Slush Fund from Economic Rescue Bill; Poison-Pill Proposal Would Ask Taxpayers to Bankroll Group Accused of Voter Fraud Nationwide Washington, Sep 27 - House Republicans have made clear that they will fight for an economic rescue package that protects the interests of families, seniors, small businesses, and all taxpayers. And as discussions continue in order to forge an agreement that reflects these principles, the American people are taking note of a left-wing giveaway Democrats are pushing to force taxpayers to bankroll a slush fund for a discredited ally of the Democratic Party. At issue is the Association of Community Organizations for Reform Now – better known as ACORN – an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. Here are just some examples of ACORN’s most recent scandals and unlawful activities: - “ACORN is a long-time advocacy group with whom Obama was once associated. Recently, though, ACORN workers in two states have pleaded guilty to election fraud, an unlikely recipient of federal largess.” (Fox News Report, 9/26/08) - “Seven ACORN workers were charged with ‘committing the biggest voter-registration fraud in [Washington] state history.’’ (The Seattle Times, 7/26/07) - ACORN workers submitted “just over 1,800 new voter registration forms, but there was a problem. The names were made up – all but six of the 1,800 submissions were fakes… The ACORN workers told state investigators that they went to the Seattle public library, sat at a table and filled out the voter registration forms. They made up names, addresses, and Social Security numbers and in some cases plucked names from the phone book. One worker said it was a lot of hard work making up all those names and another said he would sit at home, smoke mar1juana and fill out the forms.” (Fox News Channel, 5/02/08) - “Late last year, a handful of Acorn canvassers in Washington state admitted that they had falsified voter registrations by illegally filling out hundreds of forms with names such as Dennis Hastert, Leon Spinks and Fruito Boy Crispila.” (Wall Street Journal, 7/31/08) - “Eight workers for a get-out-the-vote effort in St. Louis city and county have pleaded guilty to federal election fraud for submitting false registration cards for the 2006 election, authorities said today. The workers were employed by the Association of Community Organizations for Reform Now (ACORN), gathering voter registrations.” (Associated Press, 4/02/08) - “Acorn has had a number of missteps. This month its founder, Wade Rathke, resigned after news emerged that his brother Dale had embezzled nearly $1 million from Acorn and affiliated groups eight years ago -- information the group kept from law-enforcement authorities and most members. Dale Rathke left the organization only last month.” (Wall Street Journal, 7/31/08) So how exactly will ACORN be rewarded if the Democrats get their way? Very simple: behind closed doors, ACORN-friendly language was slipped into the Democratic economic rescue proposal by Senate Banking Committee Chairman Chris Dodd (D-CT) and House Financial Services Committee Chairman Barney Frank (D-MA). Take a look: TRANSFER OF A PERCENTAGE OF PROFITS. 1. DEPOSITS. Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2). 2. USE OF DEPOSITS. Of the amount referred to in paragraph (1) 1. 65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and 2. 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569). REMAINDER DEPOSITED IN THE TREASURY. All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt. What does this mean? The Wall Street Journal breaks it down in an editorial published today: “What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such as Acorn.” “Acorn, one of America’s most militant left-wing ‘community activist groups,’ is spending $16 million this year to register Democrats to vote in November. In the past several years, Acorn’s voter registration programs have come under investigation in Ohio, Colorado, Michigan, Missouri and Washington, while several of their employees have been convicted of voter fraud…” That’s right. Rather than returning any profits made in the long-term from the economic rescue package, Democrats want to first reward their radical allies at ACORN for their help – often illegal help – in getting Democrats elected to office. Families, seniors, small businesses, and all American taxpayers deserve better than what Democratic leaders are attempting to jam down their throats. The rescue package should not become a “Christmas tree” for the Democratic Majority’s far-left wing political agenda that seeks to shower taxpayer dollars upon groups like ACORN. On behalf of beleaguered taxpayers across the nation, House Republicans will continue to fight to remove the ACORN payback and any other Democratic poison pills from the economic rescue package.[/rquoter]
Low-income housing advocacy groups such as Acorn were instrumental in creating the idea that the city, banks and society has a responsiblity to bridge the cap in minorty housing. Thats really one of the biggest reasons for the Housing bubble and bust. They pushed cities and banks and government organizations to push fannie/freddie to increase the mandate for bridging the gap. Well by bridging the gap... defaults SKYROCKETED...which is why we're in this mess. Banks are responsible for their own silly lending and wall st. is responsible for buying, packaging and adding rocket fuel, but groups like Acorn and Fannie/Freddie mandates did their share.
The irony of all of this is that fannie/freddie's mandates were increased in include these low income interests which probably have an ENORMOUS default rate. The people that pushed the mandate that significantly contributed to the collapse of those firms and the suggestion is childish?? That people bought things they couldn't afford and couldn't pay it back and they have no blame in this issue?? I'm actually getting pretty sick and tired of everyone from the Wall St. CEO to the Guy that bought a house for more than he could afford to the politicians that line their pocket with Fannie money all saying ITS NOT MY FAULT. Stop passing the damn blame. The guilt resides in multiple parties.
The whole thing is a slush fund. The only difference is that ACORN would get money based on profits whereas Wall Street is getting money based on greed, corruption, and incompetence. We say the same thing about John McCain's tax plan.
If the bill doesn't have something in it (and preferably many things in it) that pisses off the Wall Street Journal, I will be disappointed. Wall Street made the 'mistakes' that created the mess. As the official rag of Wall Street, the Journal should feel the bailout plan is a bitter pill, and should help foil all the other ponzi schemes that the Wall Street crowd want to foist on the American people. Outcomes which annoy the Wall Street Journal and their Wall Street friends are a big plus. They had their chance to dictate policy to the country, and it has lead us to where we are now.
The idea that through all knowing government idea of fairness we can level the playing field of home ownership in minorities and underrepresented areas is CHILDISH. Its lala land and it was the roots of this problem of giving debt and affording opportunities to those to own a home or a car or anything without having the down payment or credit to do so. The real estate agents, mortgage brokers, banks, and investment banks made a fortune and are all guilty as hell. Wall St. is the guiltiest as they kept the demand (the giant sucking sound) that fueled it all beyond fannie/freddie's mandates.
You know what man, that is freaking ridiculous. I have 7 different WAMU credit aps sitting on my desk received over the last 2 months and here yesterday they've gone under. The continued predatory nature of these lenders over the last 10 years has gotten completely out of control. These financial institutions have acted with complete disregard for sound business practices and now when it's time for them to reap what they've sewn, they cry socialism to save their asses. Who's going to save the American public that had all this cheap credit shoved down their throats since the first day they stepped on a college campus? The American public will pay its own debts AND the debts of the financial institutions that have been screwing them for a decade. Tell me, who's in a better position to understand credit/finance, a bank or the average American? These places make a killing on delinquency in credit. They push people to extend their credit. They give incentives to employees to push customers to generate more debt, they intentionally raise rates when customers can afford it least. They play games with late fees and send out these stupid checks every month to transfer balances, and in the fine print they mention how you'll pay a 5% fee based on the transfer amount. These people are freaking crooks. So much so that they will give credit two and three times what people earn in a year knowing full well that credit can never be repaid. The whole system needs to be changed BEFORE any checks get cashed. This thing is rotten to the core.
LOL you sound bitter as hell. If you want to only put the blame on banks then you're naive. The average American doesn't know how to live based on their means. That doesn't excuse them from the blame. It's been a problem for years. You learn how to balance your checkbook and accounts or else you get in way over your head. And it's sad that many of the people who are facing enormous amounts of debt have had generations before them live here and went through similar issues, but yet they never seemed to learn from their lessons. The successful business owners sell their product well. You don't place the sole blame on them just because their customer can't comprehend what they bought.
So tell me...why is it that a big part of the deregulation package and Fannie/Freddie mandate increase were aimed at allowing lower income families to buy a home? Further, why is it that at the firm I work at (we represent mortgage servicers in foreclosure, eviction, and bankruptcy proceedings), almost EVERY file that hits my desk is an ARM note? The deregulation package that was enacted was designed to have people who previously could not afford a home to be able to buy one. Groups like ACORN pushed for that hard. Yet you want to make the most simplistic analysis of the situation possible. As an attorney that represents servicers in the industry, I would gently suggest that you have no clue what you are talking about.
I see the "blame the minorities" strategy has been fully adopted. Here's the Congressional Black Caucus's response to Rep. Michele Bachmann who on the floor blamed the current crisis on President Clinton, minorities, and blacks. http://thinkprogress.org/wp-content/uploads/2008/09/sept-26-letter-to-boehner.pdf
Since the most irrationally optimistic about this deal think it's only going to lose 10%, and most sensible people think it's going to lose a whole lot mrs than that, I think this is one of the least offensive parts of this whole nightmare. Although, if Democrats really wanted taxpayers to partake in the potential profits, they should just give us, as individuals, stock in whichever companies they buy.
Stop making so much sense. Don't you know the Dems are trying to save America! (Which, if they weren't so much for posturing, they could have already done since they are the majority. Why do they wait? Because they are not experts on the issue, traditionally or literally.)
The deregulation package that caused this meltdown was the one that broke down the chinese wall between Wall street and banks, which allowed risky mortgages to be packaged together, and sold in a security style of transaction. While places like ACORN could push all they want, it was pure GREED which drove the banks to give these risky loans, because they knew they could sell them into these security funds. Greed...greed....greed..... Of course people of low income jumped at the ability to get a house.....but at the end of the day.....the banks should have said no........ I agree there was plenty of blame to go around, I believe Clinton signed the Gramm bill which started this train wreck....... DD
Everyone should be bitter as hell. This "economic rescue bill" is going to cost every single man, woman, and child $2,300. That's bullcrap.
No it is not, we don't know how much it will cost and it could turn a profit according to Warren Buffet, who knows a thing or two about turning a profit. DD
Consumers got greedy too. So many cases where homeowners refied to take out cash and then have it bite them in the ass. I guess I would blame the "macro" mess on the banks, etc. But each individual is responsible for their own actions. If some jerk down the street refied with interest only 3 year ARM just to take out $250k in equity so he could goto the Bahams and buy a Benz? Well that's his fault.
