Stimulus to Pay $5 Billion In Taxpayer Money To ACORN

Last week liberal Democrats slipped into the so-called “economic stimulus” bill a provision to give millions, if not billions, of dollars to ACORN.

You remember ACORN, the ultra-left-wing group that has been accused of voter fraud and funneling millions of dollars in taxpayer money into liberal political activism.

ACU raised awareness about ACORN in the last election campaign. FBI agents raided ACORN offices and is investigating for falsifying thousands of voter registration records. We produced short documentary videos on ACORN; it’s ties to left-wing groups, the Obama campaign paying it for voter turnout and other activities. Worse, we showed that ACORN was actually involved in the push for subprime loans and the mortgage meltdown that has driven down our economy. If you have not seen our short videos, you can see them on our ACORN action page: http://www.conservative.org/acornaction.html

Now, the Democrats in Congress are trying to give ACORN millions – even billions – more of our taxpayer dollars.

We need your help to fight back. We want to flood Capitol Hill and the news media with petitions against these attempts to take our tax dollars and give them to left-wing advocacy groups. Please go here, now to sign our ACU ACORN stimulus bill petition and support ACU on this critical endeavor.

There are votes pending related to this provision and we need to fight back now. Even though the House has voted once on the so-called Stimulus Bill, there are still Senate votes to come and possible final passages as changes are made. We must work to have this removed as the process moves forward. Multiple votes will take place over the next few days as the House and Senate goes back and forth on this legislation.

On Friday, House Republican Leader John Boehner raised the alarm with the discoverey that, buried in the trillion-dollar spending bill approved last week in the House Appropriations Committee was a provision for more than 4 billion dollars to go to “neighborhood stabilization activities.”

Instead of providing these funds just to state and local governments, their bills says funds can go to “States, units of general local government, and nonprofit entities or consortia of nonprofit entities.”

Why did the liberals who control the House Appropriations Committee slip that language into the bill? Because the “nonprofit entities” are units of ACORN.

We need your help to fight back. We want to flood Capitol Hill and the news media with petitions against these attempts to take our tax dollars and give them to left-wing advocacy groups. Please go here now to sign our ACU ACORN stimulus bill petition and support ACU on this critical endeavor.

Boehner noted that, “The House Democrats’ trillion-dollar spending bill also includes $1 billion for the Community Development Block Grant Program.” He then went on to point out that ACORN reports filed with the Office of Management and Budget shows that ACORN spent almost $1.6 million in federal taxpayer funds for the grants from 2003 through 2007. Now they are going to come back for more.

Boehner’s analysis also shows that ACORN has been awarded more than $53 million in taxpayer dollars over the last several years. This amount does not reflect the millions more ACORN has received in federal block grant funds awarded to state and local agencies which passed them on to ACORN.

We need your help to fight back. We want to flood Capitol Hill and the news media with petitions against these attempts to take our tax dollars and give them to left-wing advocacy groups. Please go here now to sign our ACU ACORN stimulus bill petition and support ACU on this critical endeavor.

President Obama and the liberal Democrats in Congress have said that they want this trillion-dollar stimulus bill to create jobs in America. What they haven’t said is that this is becoming part of a political payoff bill to reward their liberal friends with billions of dollars in taxpayer money.

What is sad is that our economic crisis was in part caused by these very same groups who are now seeking to get their hands on billions of dollars in taxpayer funds.

As our video and other documentation pointed out, ACORN pressured lenders and regulatory agencies to promote subprime loans, a chief culprit in our economic collapse. In turn it received millions from the mortgage companies themselves and in turn Obama’s friends at Fannie Mae reaped millions more in the process. Remember our note last week? Joe Biden’s new vice presidential chief of staff is a former lobbyist for Fannie Mae.

Now, ACORN is set to receive funds from the trillion-dollar stimulus package.

This has to end. The revolving door of political and financial interests that have led our country to economic collapse must be stopped. We must push back against this effort to give funds to a group that has shown it is directly involved in liberal political action and voter fraud.

We need your help to fight back. We want to flood Capitol Hill and the news media with petitions against these attempts to take our tax dollars and give them to left-wing advocacy groups. Please go here now to sign our ACU ACORN stimulus bill petition and support ACU on this critical endeavor.

Thank you for your help with this important effort to shine the light on efforts to give billions to ACORN.

Sincerely,

Dennis Whitfield
Executive Vice President

P.S. President Barack Obama’s campaign gave more than $800,000 to ACORN for voter turnout. ACORN then was raided and investigated for voter fraud, and now the liberals in Congress are trying to reward them with millions-even billions- in taxpayer funds. Please help us fight back now!

FROM: McAuley’s World

Lets not forget that the Law firm Obama worked for in Chicago specialized in ripping off the poor through these Community Redevelopment Scams – Taking money for renovating buildings and then defaulting on the work – See the McAuleysworld Posts on Obama/Chicago /Rezko – Search the Chicago Tribune Web Site for Obama – Rezko articles.

Tony Rezko, Obama’s legal Client, Rezko – the man who partnered with the Senior Partner of the Law Firm where Obama worked, the man who admittedly gave illegal campaign contributions to Obama, the man who acted as a Campaign Finance Advisor to Obama, the man who particpiated in a shady real estate deal with Obama, the convicted felon and Chicago Slum Lord with ties to now impeached Governor Rod Blagovich – made his living off these Community Redevelopment scams – $4 Billion in additional political payoffs to these scam artists? Change? Sounds like the same Old Time Chicago Political BS to me.  Chicago’s poor ended up in Slum Lord dwellings with no heat or light during the Chicago winter. 11 of the 30 buildings Rezko owned were in Obama’s State Senate District.    

VIDEO: ACORNS Voter Fraud Continues – OHIO RESIDENTS NEED TO RECALL SECRETARY OF STATE

OHIO’S SECRETARY OF STATE, JENNIFER BRUNNER, Should be recalled from office by the residents of the State of Ohio. Not only is the Secretary of State aiding and abetting the ACORN voter fraud by her inaction, she has actually taken steps to assist in this Voter Fraud. Secretary of State Brunner actually prevented the Citizen’s of the State of Ohio from “watching” the early election process. Poll watchers are a regular part of the election process in America, poll watching is an additional security step in making sure that our elections are run fairly – there will be poll watchers on election day in November, however, none were allowed during the crooked register and vote activities that just concluded. See the Video below ……….

 

ACORN’S BOGUS RESPONSE

ADDITIONAL PROOF OF ACORN/OBAMA SUPPORTER VOTE FRAUD IN OHIO:

http://www.palestra.net/videos/play/17369 and http://www.palestra.net/videos/play/16859 , 

THE SECRETARY OF STATE EVEN PREVENTED OHIO CITIZENS’S FROM SERVING AS “POLL WATCHERS” OR OBSERVERS – THEY ARE ALLOWED ON ELECTION DAY – BUT NOT DURING THE BOGUS EARLY REGISTRATION AND VOTE DAYS:

 

 

BARACK OBAMA AND ACORN – HERE IS THE HISTORY

THE STATE OF NEVADA IS ON TO ACORN –

Voter Registration Fraud is Voter Fraud – In OHIO there were 90,000 ACORN registrations.

ACORN Office Raided By Police

ACORN Vegas Office Raided in Voter Fraud Investigation

ACORN’s Las Vegas headquarters has been raided by Nevada authorities looking for evidence of voter fraud. 

Nevada state authorities seized records and computers Tuesday from the Las Vegas office of an organization that tries to get low-income people registered to vote, after fielding complaints of voter fraud. 

Bob Walsh, spokesman for the Nevada secretary of state’s office, told FOXNews.com the raid was prompted by ongoing complaints about “erroneous” registration information being submitted by the Association of Community Organizations for Reform Now, also called ACORN. 

The group was submitting the information through a voter sign-up drive known as Project Vote. 

“Some of them used nonexistent names, some of them used false addresses and some of them were duplicates of previously filed applications,” Walsh said, describing the complaints, which largely came from the registrar in Clark County, Nev. 

Secretary of State Ross Miller said the fraudulent registrations included  forms for the starting lineup of the Dallas Cowboys football team. 

“Tony Romo is not registered to vote in the state of Nevada, and anybody trying to pose as Terrell Owens won’t be able to cast a ballot on Nov. 4,” Miller said. 

Walsh said agents from both the secretary of state’s office and Nevada attorney general’s office conducted the raid at 9:30 a.m. local time, and “took a bunch of stuff.” Miller’s office reported seizing eight computer hard drives and about 20 boxes of documents. 

Bertha Lewis, interim chief organizer for ACORN, released a statement saying the group has for months been turning over any suspicious registration information to elections officials. She said those officials routinely ignored their tips, and called the raid a “stunt.” 

“When we have identified suspicious applications, we have separated them out and flagged them for election officials. We have zero tolerance for fraudulent registrations. We immediately dismiss employees we suspect of submitting fraudulent registrations,” she said. “Today’s raid by the secretary of state’s office is a stunt that serves no useful purpose other than discredit our work registering Nevadans and distracting us from the important work ahead of getting every eligible voter to the polls.”

Neither the group, which hires canvassers to register voters, nor any employees have been charged or arrested for fraud or other crimes, said Miller, a Democrat. 

But it’s not the first time ACORN’s been under investigation for registration irregularities. The raid is the latest of at least nine investigations into possible fraudulent voter registration forms submitted by ACORN — the probes have involved ACORN workers in Wisconsin, New Mexico, Indiana and other states. 

In response to the Las Vegas raid, Republican Nevada Sen. John Ensign and seven other senators penned a letter to the Federal Housing Finance Agency calling for the suspension of taxpayer dollars to “controversial groups like ACORN.” The letter referred to contributions that potentially could come from Fannie Mae and Freddie Mac under the Housing and Economic Recovery Act of 2008. 

In 2006, ACORN also committed what Washington Secretary of State Sam Reed called the “worse case of election fraud” in the state’s history. 

In the case, ACORN submitted just over 1,800 new voter registration forms, and all but six of the 1,800 names were fake. 

More recently, 27,000 registrations handled by the group from January to July 2008 “went into limbo because they were incomplete, inaccurate, or fraudulent,” said James Terry, chief public advocate at the Consumers Rights League.

FOX News’ Eric Shawn, Judson Berger and Cristina Corbin and The Associated Press contributed to this report

http://elections.foxnews.com/2008/10/07/acorn-vegas-office-raided-voter-fraud-investigation/

Ohio Homeless Shuttled To Polls – Voter Fraud Waiting To Happen

From The New York Post.com

CLEVELAND —  Volunteers supporting Barack Obama picked up hundreds of people at homeless shelters, soup kitchens and drug-rehab centers and drove them to a polling place yesterday on the last day that Ohioans could register and vote on the same day, almost no questions asked.

The huge effort by a pro-Obama group, Vote Today Ohio, takes advantage of a quirk in the state’s elections laws that allows people to register and cast ballots at the same time without having to prove residency.

Republicans have argued that the window could lead to widespread voter fraud because officials wouldn’t have an opportunity to verify registration information before ballots were cast.

Among the volunteers were Yori Stadlin and Vivian Lehrer of the Upper West Side, who got married last week and decided to spend their honeymoon shepherding voters to the Cuyahoga County Board of Elections.

Early today, Stadlin’s van picked up William Woods, 59, at the soup kitchen of the Bishop Cosgrove Center.

“I never voted before,” Woods said, because of a felony conviction that previously barred him from the polls. “Without this service, I would have had no way to get here.”

 

ACORN – A Threat To Democracy In American?

DEFINING DEMOCRACY

Government of the People

In the dictionary definition, democracy “is government by the people in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.” In the phrase of Abraham Lincoln, democracy is a government “of the people, by the people, and for the people.”

Freedom and Democracy are often used interchangeably, but the two are not synonymous. While Democracy is a set of ideas and principles about freedom, Democracy is also a set of practices and procedures. Democracy is the institutionalization of freedom.

When a society rejects the practices and procedures that institutionalize freedom – Democracy itself is at risk. Without a free and fair electorial system Democracy is impossible. 

Voter Eligibility

Democracies establish rules for the conduct of fair and free elections. The first of these rules identify “who” is qualified or “eligible” to vote. Age, citizenship, residency or an obligation to pay taxes are frequent requirements to qualify as a voter.

One Person – One Vote

The second rule, universally adopted in Democracies, is the rule of “one person, one vote”. This rule stands for the proposition that every qualified elector is entitled to one and only one vote.

Electoral Fraud

Electoral fraud is illegal interference with the process of an election. http://en.wikipedia.org/wiki/Electoral_fraud

In national elections, successful election fraud can have the effect of a coup d’état or corruption of a democracy. http://en.wikipedia.org/wiki/Electoral_fraud 

A look at past narrow election victories proves that a small amount of fraud is all that would be needed to change the outcome of an election with National importance. http://en.wikipedia.org/wiki/Electoral_fraud

FORMS OF ELECTION FRAUD

Ballot stuffing, the illegal act of one person submitting multiple ballots during a vote in which only one ballot per person is permitted. The name originates from the earliest days of this practice in which people literally did stuff more than one ballot in a ballot box at the same time.  http://en.wikipedia.org/wiki/Ballot_stuffing

Registering false voters, the deceased or fictitious people is another form of voter fraud.

Subverting voter registration rules, by falsifying residency, citizenship, age, name or other qualifications, is voter fraud.

Impersonating a voter is voter fraud.

Voting in multiple precincts, known as carousel voting, is a form of voter fraud. Individuals who sell their vote or vote in multiple precincts are known as “floaters.” 

ACORN – Conduct Aimed At Subverting Democracy?

ACORN or the Association of Community Organizations for Reform Now, has been described as “a  multimillion-dollar outfit that uses intimidation and other tactics to push its agenda of voter registration.” Acorn officials bill themselves as nonpartisan community organizers. You can decide what you think based upon the history. http://opinionjournal.com/editorial/feature.html?id=110009189

Where does ACORN get its “millions of dollars” from. The US Taxpayer, thats where.  As part of a Fannie Mae funding bill in 1995, House Democrats passed a “trust fund” designed to subsidize ACORN.  http://opinionjournal.com/editorial/feature.html?id=110009189  ACORN operates in at least 38 states as well as Canada and Mexico. 

ACORN claims that the Organization has never been indicted, however the facts show that “ACORN workers had been convicted in Wisconsin and Colorado, and investigations were still under way in Ohio, Tennessee and Pennsylvania.” in November 2004. “Four workers from Acorn,  had been indicted by a federal grand jury for submitting false voter registration forms to the Kansas City, Missouri, election board”.  http://opinionjournal.com/editorial/feature.html?id=110009189

ACORN supports the concept of “Voters Without Borders” – the practice of not requiring any sort of Voter ID to qualify voters as being elligible to cast a ballot and allowing those same individuals to cast ballots where-ever they please. 

ACORN’s hostility toward voter identification laws aimed at ensuring fairness and accuracy at the polls was evidenced by the lawsuit ACORN filed challenging Voter ID laws in MIssouri. ACORN has brought similar court challenges in other states, including Ohio. http://www.nysun.com/opinion/voters-without-borders/68846/ 

CNN’s Lou Dobbs has addressed ACORN voter fraud – Dobb’s stated,”we have debased our right to vote.”

 

 

Acorn and its affiliates have pulled some real stunts in recent years. In Ohio in 2004, a worker for one affiliate was given crack cocaine in exchange for fraudulent registrations that included underage voters, dead voters and pillars of the community named Mary Poppins, Dick Tracy and Jive Turkey.

During a Congressional hearing in Ohio in the aftermath of the 2004 election, officials from several counties in the state explained Acorn’s practice of dumping thousands of registration forms in their lap on the submission deadline, even though the forms had been collected months earlier. “You have to wonder what’s the point of that, if not to overwhelm the system and get phony registrations on the voter rolls,” says Thor Hearne of the American Center for Voting Rights, who also testified at the hearing. “These were Democratic officials saying that they felt their election system in Ohio was under assault by these kinds of efforts to game the system.” http://opinionjournal.com/editorial/feature.html?id=110009189

 

 

On Election Day, Poll Watchers are allowed to monitor Election activities and “challenge” individuals who may not meet voter “qualifications” …… not so during Ohio’s “early election period”. Why is it  okay to have Election observors in November but not during early voting in October? Seems very peculiar to me ….

 

 

WASHINGTON, Sept 25, 2008 /PRNewswire-USNewswire via COMTEX/ — James Terry, Chief Public Advocate for the Consumers Rights League, today testified at a joint House Administration and House Judiciary Committee oversight hearing on “Federal, State and Local Efforts to Prepare for the General 2008 Election,” where he highlighted “corruption at every level of ACORN including embezzlement, cover-ups, misuse of taxpayer funds and voter fraud.”   http://www.marketwatch.com/news/story/crl-testimony-acorns-voter-fraud/story.aspx?guid={573B31D0-6AB7-4353-B8E7-91300F4DFF81}&dist=hppr

An excerpt of his testimony follows:

James Terry, Chief Public Advocate, Consumers Rights League:
“ACORN routinely says it will clean up its act. Yet, given its decade-long history of voter fraud, embezzlement, and misuses of taxpayer funds, ACORN’s pattern of fraud can no longer be dismissed as a series of ‘unfortunate events.’
“The problem of voter registration fraud raises serious questions for this committee, and the Consumers Rights League appreciates that the right questions are being asked. “Here are the most important questions right now: We know about the thousands of potentially fraudulent voter registration cards turned in by ACORN and caught by officials. But given the size of ACORN’s efforts and the fact that the abuses appear to be systemic, we believe it is fair to question how many more fraudulent registrations have not been discovered.”
Furthermore, as this mega organization with a decades long history of violating the law is turned to get out the vote efforts, we believe it is fair to question how many fraudulent registrations may lead to fraudulent votes or what other activities they are willing to undertake to influence the election.”
“These are serious questions, especially in light of recent election results which show that a just few votes can change the outcome of an election, the course of our country and the course of history.”
“While we do not presume to tell this committee how to address this problem, we respectfully submit that our nation’s election system is facing a concerted campaign that raises serious issues that merit the committee’s oversight and attention.” http://www.marketwatch.com/news/story/crl-testimony-acorns-voter-fraud/story.aspx?guid={573B31D0-6AB7-4353-B8E7-91300F4DFF81}&dist=hppr
A complete transcript of hearing testimony can be read here:
http://www.consumersrightsleague.org/uploadedfiles/JamesTerryACORN9-24.pdf

ACORN registered a 13 year old to Vote in New Mexico.

ACORN workers submitted 35,000 registrations in Kansas City – 85% of the registrations were “bogus”

Out of 1800 voter registrations submitted by ACORN in the state of Washington – only 8 were legitimate.

ACORN is not a Democratic or Republican problem ?

In Michigan, ACORN signed up more than 200,000 new voters in the Metro Detroit area. “Several municipal clerks across the state are reporting fraudulent and duplicate voter registration applications, most of them from a nationwide community organization” …”The majority of the problem applications are coming from the group ACORN, Association of Community Organizations for Reform Now, which has a large voter registration program” ….. “There appears to be a sizeable number of duplicate and fraudulent applications,” said Kelly Chesney, spokeswoman for the Michigan Secretary of State’s Office. “And it appears to be widespread.” The Secretary of State’s Office has turned over several of the applications to the U.S. Attorney’s Office. http://www.freep.com/apps/pbcs.dll/article?AID=2008809140383 The Free Press is a liberal publication.

The Consumers Rights League discusses Voter Registration issues in Michigan, ACORN and the Democratic Party’s attempt to funnel money from the “Bailout Package” to ACORN. Prior to the “BAILOUT” package, ACORN was already receiving $100 Million dollars in funding a year.

The Consumers Rights League criticizes ACORN for being one of the “predatory lenders” responsible for creating the  Finance/Housing crisis.

Virginia Voter Fraud was funded by ACORN’s Political Action Committee

Investigation into Virginia Voter Fraud expands:

 

 

The most disturbing example of modern day Voter Fraud in the United States may involve ACORN activity in Milwaukee, Wisconsin. The Milwaukee Journal Sentinal Reported that, “Inquiry finds evidence of fraud in election, Cast ballots outnumber voters by 4,609″. http://www.jsonline.com/story/index.aspx?id=324933 

“Investigators said Tuesday they found clear evidence of fraud in the Nov. 2 election in Milwaukee, including more than 200 cases of felons voting illegally and more than 100 people who voted twice, used fake names or false addresses or voted in the name of a dead person. Officials said charges will be filed in coming weeks, as individual cases are reviewed and more evidence is gathered. Even now, three months after the investigation, officials have not been able to close a gap of 7,000 votes.” http://www.jsonline.com/story/index.aspx?id=324933

The fraud investigation has focused on the more than 70,000 people who registered to vote on election day, not the other 200,000-plus other voters. That is because registration cards provide a paper trail, which officials said would be stronger in court than computerized records.

The FBI and Milwaukee Police Department have logged more than 1,000 hours reviewing the 70,000 same-day registration cards, including 1,300 that could not be processed because of missing names, addresses and other information. http://www.jsonline.com/story/index.aspx?id=324933

The Journal noted that, “non-residents used non-existent city addresses to vote in Milwaukee. Officials are checking to see if they also voted elsewhere, such as from their actual address.”

After an ongoing investigation, The Journal reported that, “Criminal investigations could be launched against at least six voter registration workers who tried to add dead, imprisoned or imaginary people to the voter rolls, according to the Milwaukee Election Commission.” http://www.jsonline.com/story/index.aspx?id=780716 

“One woman called us to complain because her husband has been dead for 10 years and a voter registration was submitted,” Edman said.

In about 12 cases, deputy registrars paid by ACORN were “making people up or registering people that were still in prison,”. In other cases, workers used the same address for numerous voters or used driver’s license numbers that did not fit the voters’ birth dates. But most of the fraud involved submitting duplicate cards for voters who were already registered, and forging the voters’ signatures. http://www.jsonline.com/story/index.aspx?id=780716.

In 2004, the Presidental Election in Wisconsin was decided by 11,000 votes.

The Solution

The solutions are simple – require a State issued ID to vote or obtain an absentee ballot.

Computerize voter registration rolls and cross index them with Driver’s License and Social Security records.

End same day Registration & Vote programs. 

Require proof of citizenship. If you are hired for a new job, the law requires you to submit proof of citizenship before you start to work- why do we treat the privilege of voting as if it were of lesser importance. 

Our Democracy is based upon free and fair elections – not only to we need to conduct free and fair elections but the elections must be perceived as being free and fair by the electorate.

THE MORTGAGE SCANDAL – HOW FEDS CREATED THE MORTGAGE MESS

By STAN LIEBOWITZ

February 5, 2008

PERHAPS the greatest scandal of the mortgage crisis is that it is a direct result of an intentional loosening of underwriting standards – done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults.

At the crisis’ core are loans that were made with virtually nonexistent underwriting standardsno verification of income or assets; little consideration of the applicant’s ability to make payments; no down payment.

Most people instinctively understand that such loans are likely to be unsound. But how did the heavily-regulated banking industry end up able to engage in such foolishness?

From the current hand-wringing, you’d think that the banks came up with the idea of looser underwriting standards on their own, with regulators just asleep on the job. In fact, it was the regulators who relaxed these standards – at the behest of community groups and “progressive” political forces.

In the 1980s, groups such as the activists at ACORN began pushing charges of “redlining” – claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation.

In fact, minority mortgage applications were rejected more frequently than other applications – but the overwhelming reason wasn’t racial discrimination, but simply that minorities tend to have weaker finances.

Yet a “landmark” 1992 study from the Boston Fed concluded that mortgage-lending discrimination was systemic.

That study was tremendously flawed – a colleague and I later showed that the data it had used contained thousands of egregious typos, such as loans with negative interest rates. Our study found no evidence of discrimination.

Yet the political agenda triumphed – with the president of the Boston Fed saying no new studies were needed, and the US comptroller of the currency seconding the motion.

No sooner had the ink dried on its discrimination study than the Boston Fed, clearly speaking for the entire Fed, produced a manual for mortgage lenders stating that: “discrimination may be observed when a lender’s underwriting policies contain arbitrary or outdated criteria that effectively disqualify many urban or lower-income minority applicants.”

Some of these “outdated” criteria included the size of the mortgage payment relative to income, credit history, savings history and income verification. Instead, the Boston Fed ruled that participation in a credit-counseling program should be taken as evidence of an applicant’s ability to manage debt.

Sound crazy? You bet. Those “outdated” standards existed to limit defaults. But bank regulators required the loosened underwriting standards, with approval by politicians and the chattering class. A 1995 strengthening of the Community Reinvestment Act required banks to find ways to provide mortgages to their poorer communities. It also let community activists intervene at yearly bank reviews, shaking the banks down for large pots of money.

Banks that got poor reviews were punished; some saw their merger plans frustrated; others faced direct legal challenges by the Justice Department.

Flexible lending programs expanded even though they had higher default rates than loans with traditional standards. On the Web, you can still find CRA loans available via ACORN with “100 percent financing . . . no credit scores . . . undocumented income . . . even if you don’t report it on your tax returns.” Credit counseling is required, of course.

Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed “the most flexible underwriting criteria permitted.That lender’s $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.

Who was that virtuous lender? Why – Countrywide, the nation’s largest mortgage lender, recently in the headlines as it hurtled toward bankruptcy.

In an earlier newspaper story extolling the virtues of relaxed underwriting standards, Countrywide’s chief executive bragged that, to approve minority applications that would otherwise be rejected “lenders have had to stretch the rules a bit.” He’s not bragging now.

For years, rising house prices hid the default problems since quick refinances were possible. But now that house prices have stopped rising, we can clearly see the damage caused by relaxed lending standards.

This damage was quite predictable: “After the warm and fuzzy glow of ‘flexible underwriting standards’ has worn off, we may discover that they are nothing more than standards that lead to bad loans . . . these policies will have done a disservice to their putative beneficiaries if . . . they are dispossessed from their homes.” I wrote that, with Ted Day, in a 1998 academic article.

Sadly, we were spitting into the wind.

These days, everyone claims to favor strong lending standards. What about all those self-righteous newspapers, politicians and regulators who were intent on loosening lending standards?

As you might expect, they are now self-righteously blaming those, such as Countrywide, who did what they were told.

Stan Liebowitz is the Ashbel Smith professor of Economics in the Business School at the University of Texas at Dallas.

http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

VIDEO: ACORN To Get Bailout Money – Starting The Next Mortgage Crisis Today

THE WALL STREET JOURNAL

Re-Seeding the Housing Mess – Bailout Money To ACORN 

Money Won’t Go To Repay Taxpayors 

Taxpayers are naturally suspicious that political insiders and contributors on Wall Street are going to make out like bandits once Washington starts spending the $700 billion in the financial market rescue. But Democrats have already decided to spin off potentially billions of taxpayer dollars from the bailout fund to their own political buddies — not on Wall Street but on nearby K Street.

The House and Senate Democratic drafts contain an indefensible and well-hidden provision. It would mandate that at least 20% (MY READING OF THE LANGUAGE INDCIATES THAT ALL OF THE MONEY WILL GO TO THESE ORGANIZATIONS) of any profit realized from the sale of each troubled asset purchased under the Paulson plan be deposited in either the Housing Trust Fund or the Capital Magnet Fund. Only after these funds get their cut of the profits are “all amounts remaining . . . paid into the Treasury for reduction of the public debt.”

Here’s the exact, amazing language from the Democratic proposal, breaking out how the money would be divided and dispensed:

“Deposits. Not less than 20% of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).  (This poorly drafted language does not provide a cap – just “not less than 20%” – this is what you get when you “rush” and “cobble” legislation together you get “crap” like this.) 

Use of Deposits. 65% shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act . . . ; and 35% shall be deposited into the Capital Magnet Fund . . . (EXCUSE ME BUT 35% + 65% = 100%, and with no “cap” specified above there could well be nothing left to deposit into the Treasury under the paragraph below. 

“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 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.

Along with other potential recipients of these funds, including the National Council of La Raza and the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we’d be funneling more cash to the groups that helped create the lending mess in the first place.

This isn’t the first time this year that Democrats have tried to route money for fixing the housing crisis into the bank accounts of these community activist groups. The housing bill passed by Congress in July also included a tax on Fannie Mae and Freddie Mac to raise an estimated $600 million annually in grants for these lobbying groups. When Fannie and Freddie went under, the Democrats had to find a new way to fill the pipeline flowing tax dollars into the groups’ coffers.

This is a crude power grab in a time of economic crisis. Congress should insist that every penny recaptured from the sale of distressed assets be dedicated to retiring the hundreds of billions of dollars in public debt that will be incurred, or passed back to taxpayers who will ultimately underwrite the cost of the bailout.

The idea that special-interest groups on the left or right should get a royalty payment for monies that are repaid to the Treasury is a violation of the public trust. We’re told the White House and House Republicans are insisting that the Acorn fund be purged from the bailout bill. The Paulson plan is supposed to get us out of this problem, not start it over again.

http://online.wsj.com/article/SB122247015469280723.html?mod=rss_opinion_main

Contact your Congressperson And Senators NOW – Tell them to vote NO.

Contact Your Senators Here:  http://www.emailyoursenator.com/senators.html  Click on your Senators, Select the Contact Folder and then  click on the email address.

Contact Congresspeople: http://www.house.gov/zip/ZIP2Rep.html You’ll need your zip  code

McCauleysweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

Infamous Video of Committee Meeting on Fannie Reformhttp://www.youtube.com/watch?v=_MGT_cSi7Rs&eurl=http://gatewaypundit.blogspot.com/2008/09/devastating-dems-refuse-to-reform.html

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