Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.
Benjamin Franklin

Why is ACORN in The Bailout?

By: Pam On: Sep/26/08 - 12 Comments

  Senator Lindsey Graham explained

And this deal that’s on the table now is not a very good deal. Twenty percent of the money that should go to retire debt that will be created to solve this problem winds up in a housing organization called ACORN that is an absolute ill-run enterprise, and I can’t believe we would take money away from debt retirement to put it in a housing program that doesn’t work.

Dodd proposal:

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.

The Wall Street Journal reported on the HTF/ACORN/Democratic connections in July:

The housing bill signed Wednesday by President George W. Bush will provide a stream of billions of dollars for distressed homeowners and communities and the nonprofit groups that serve them.

One of the biggest likely beneficiaries, despite Republican objections: Acorn, a housing advocacy group that also helps lead ambitious voter-registration efforts benefiting Democrats. :

Partly because of the role of Acorn and other housing advocacy groups, the White House and its allies in Congress resisted Democrats’ plans to include money for a new affordable-housing trust fund and $4 billion in grants to restore housing in devastated neighborhoods. In the end, the money stayed in the bill; the White House saw little choice.

What most riles Republicans about the bill is the symbiotic relationship between the Democratic Party and the housing advocacy groups, of which Acorn is among the biggest. Groups such as the National Council of La Raza and the National Urban League also lobby to secure government-funded services for their members and seek to move them to the voting booth. Acorn has been singled out for criticism because of its reach, its endorsements of Democrats, and past flaws in its bookkeeping and voter-registration efforts that its detractors in Congress have seized upon.

Ed:

Profits? We’ll be lucky not to take a bath on the purchase of these toxic assets. If we get 70 cents on the dollar, that would be a success.

That being said, this section proves that the Democrats in Congress have learned nothing from this financial collapse.  They still want to game the market to pick winners and losers by funding programs for unqualified and marginally-qualified borrowers to buy houses they may not be able to afford ” and that’s the innocent explanation for this clause.

The real purpose of section D is to send more funds to La Raza and ACORN through housing welfare, via the slush fund of the HTF.  They want to float their political efforts on behalf of Democrats with public money, which was always the purpose behind the HTF.  They did the same thing in April in the first bailout bill, setting aside $100 million in “counseling” that went in large part to ACORN and La Raza, and at least in the former case, providing taxpayer funding for a group facing criminal charges in more than a dozen states for fraud.

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Posted on: September 26, 2008 |

Posted in: Democrats, Economy, Presidential Election '08, Subprime Crisis

12 Responses to “Why is ACORN in The Bailout?”

  1. Why is ACORN in The Bailout? « Thoughts Of A Conservative Christian
    September 26, 2008 - 09:51 AM on September 26th, 2008

    [...] is ACORN in The Bailout? September 26, 2008 — budsimmons  Why is ACORN in The Bailout? September 26, 2008 7:57 AM Posted By:Pam And this deal that’s on the table now is not a very [...]

  2. 9/11
    September 26, 2008 - 01:59 PM on September 26th, 2008

    The best and most beautiful things in the world cannot be seen or even touched, they must be felt with the heart.HelenKellerHelen Keller

  3. no acorns
    September 26, 2008 - 04:23 PM on September 26th, 2008

    A PIG FATTENED ON ACORNS NEEDS TO BE SLAUGHTERED!!!!!

    Why, oh why, are people and the MSM not talking about this sickening twist? Please pass this along to all of your friends and the mainstream media in the hope that the truth may accidently slip out (beyond Greta) regarding the Democrat efforts to pork-up the economic rescue.

    THE ECONOMY IS IN A CRISIS AND THE DEMOCRATS ARE PORKING UP A RESCUE BILL WITH EARMARKS TO A-C-O-R-N (THE VOTER FRAUD OUTFIT).

    NO WONDER THE GOP IS HOLDING FIRM. PASS this to every media outfit you know so that maybe the truth will leak out about why McCain can not agree to such a mess!!!

    http://hotair.com/archives/2008/09/26/the-democratic-acorn-bailout/

    (excerpt:)

    House Republicans refused to support the Henry Paulson/Chris Dodd compromise bailout plan yesterday afternoon, even after the New York Times reported that Treasury Secretary Henry Paulson got down on one knee to beg Nancy Pelosi to compromise. One of the sticking points, as Senator Lindsey Graham explained later, wasn’t a lack of begging but a poison pill that would push 20% of all profits from the bailout into the Housing Trust Fund ” a boondoggle that Democrats in Congress has used to fund political-action groups like ACORN and the National Council of La Raza.

  4. Internet and Businesses Online » Blog Archive » acorn bailout
    September 26, 2008 - 07:15 PM on September 26th, 2008

    [...] Why is ACORN in The Bailout? 9 hours ago [...]

  5. aaaproxy » Blog Archive » acorn bailout
    September 26, 2008 - 07:36 PM on September 26th, 2008

    [...] Why is ACORN in The Bailout? 9 hours ago [...]

  6. acorn | hotwordstoday
    September 26, 2008 - 08:26 PM on September 26th, 2008

    [...] Why is ACORN in The Bailout? [...]

  7. acorn bailout
    September 27, 2008 - 06:38 AM on September 27th, 2008

    [...] Why is ACORN in The Bailout? 11 hours ago [...]

  8. IRS
    September 27, 2008 - 12:58 PM on September 27th, 2008

    Every act of creation is first an act of destruction.PabloPicassoPablo Picasso

  9. The Locke Report » Blog Archive » Obama — Dictator or Presidential Candidate?
    September 27, 2008 - 07:04 PM on September 27th, 2008

    [...] to an interview of Lindsey Graham by Greta Van [...]

  10. Illegal Immigration
    September 28, 2008 - 11:19 AM on September 28th, 2008

    I think of myself as an intelligent, sensitive human being with the soul of a clown which always forces me to blow it at the most important moments.JamesDouglasMorrisonJames Douglas Morrison, lead singer of The Doors

  11. snowy egret
    September 29, 2008 - 08:12 AM on September 29th, 2008

    ACORN is a radical bunch of left-wing extremists they invaded congressional HQ a few years ago waving food trays they are hoods and should get investigated ITS TIME TO CRACK THIS NUT CALL CHIP & DALE:(|)

  12. Oh yeah, we lied about ACORN - Page 11 - mcarterbrown.com
    October 22, 2008 - 03:56 PM on October 22nd, 2008

    [...] absolutely nothing. http://www.consumersrightsleague.org…AHC_Report.pdf Greg Mankiw’s Blog Why is ACORN in The Bailout? | Right Voices The Corner on National Review Online There, I did your research for you. __________________ [...]

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