9/27/08

Who gets the billions? ACORN.

More ACORN stories: hereVoter-fraud stories: here

Congress awards subprime market to the union-backed voter-fraud group that helped create the problem

The politicians just can’t resist the opportunity to trade on a crisis.

The Democrats who prevented tighter controls on Freddie and Fannie over the past few years now want ACORN (The Association of Community Organizations for Reform Now) to look after “Main Street” by bailing out folks who signed up for homes they couldn’t afford. I refrain from using the term “bought homes,” given that most had little money or income or hope of paying for what they wanted to own.

The Republicans are just as bad. They passed legislation that removed the firewall between commercial and investment banking in the late 90s (Clinton signed), and now they want to allow the Dems their indulgence in ACORN as long as they get a concession for their constituency. More capital gains tax breaks. Benefitting the same guys who made off with the billions in short-term profits from risky mortgage investments.

Are we furious yet–because we ought to be. Most of us won’t be “protected” by any of this.

A perfect storm of both parties looking after their political base (money), rather than the integrity of our nation’s banking system is what got us here. And now it threatens to cost us even more, as each side bargains for their own.

A billion here and a billion there, Everett Dirksen once said, and soon you are talking about real money.

If the Republicans (1999) hadn’t removed the firewall, the mortgage debacle would not be threatening our commercial banks. If the Democrats (Dodd and Franks) had not frustrated attempts by Republicans (including Dole and McCain) to reign in Fannie and Freddie, mortgages to unqualified loan applications would not have been possible.

Both sides of the aisle drank the kool-aid in order to get something for themselves–but gave up looking after Americans who elect them and depend on them to keep us safe.

My concern is that the longer we continue using borrowed (from China and other sovereign wealth funds) money that taxpayers are on the hook for, to prop up businesses that have failed . . . the harder our economy will fall when the bills come due.

We are in a recession. We need to own up to it, and deal with it. Now. This band-aid bailout Washington style is not likely to do that–and it will cost extra billions to buy the votes of those who want a little in the deal for their own.

The Democrats have the votes to pass whatever they want. But they want political cover for the $700B. They want a few dozen Republicans to share the blame with them. If a deal on lower capital gains rates comes out of this, you will know they found a deal they couldn’t resist. And ACORN will be put in charge of billions of your tax dollars.

No wonder polls show average Americans–the overwhelming majority of Americans, in full revolt.

(blogs.fayobserver.com)

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