Posts Tagged ‘Housing Trust Fund’

Democrat Bailout Package: 20% Would Go To Partisan And Corrupt Fund

September 26, 2008

As Democrats and their media lackeys create a fictional narrative of an agreed-upon bailout deal gone bad because John McCain came into town, it is important to look at why this package has REALLY failed.  In short, the answer is an acronym: A.C.O.R.N.

Ed Morrissey has the story:

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:

Morrissey then provides the relevant portion of the Senate Democrat proposa which Democrats claim that the Republicans ‘agreed to’:

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.

Of this clearly poison pill, Morrissey goes on to say:

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.

It’s bad enough that taxpayers have to pay the price for Congress’ decade-long distortions of the lending and investment markets.  If we realize a profit from the bailout, that money should go to pay down the debt or get returned to taxpayers as dividends from their investment — not to organizations committing voter fraud, and not to restarting the entire cycle of government meddling in lending markets.  I’d support a rational bailout package, but anything that funds the HTF needs to get stopped.

The American people need to become aware that the Democratic leadership are liars without shame.  They literally closed the House Republicans out of the loop in participating in the proposal that they then falsely claim the Republicans agreed to.  They make a full fifth of the total bailout package dedicated to a fund that has historically been a naked partisan tool that has participated in outright pro-Democratic voter fraud.  They claim that John McCain has not done enough to bring about an agreement on the bailout package, and then attack him the moment he shoes up to devote himself to helping come to an agreement.  And they engage in naked “Presidential politics” even as they claim that John McCain’s participation was an act of “Presidential politics.”

In chapter 10 of His Mein Kampf, Hitler wrote:

In this they proceeded on the sound principle that the magnitude of a lie always contains a certain factor of credibility, since the great masses of the people in the very bottom of their hearts tend to be corrupted rather than consciously and purposely evil, and that, therefore, in view of the primitive simplicity of their minds, they more easily fall victim to a big lie than to a little one, since they themselves lie in little things, but would be ashamed of lies that were too big. Such a falsehood will never enter their heads, and they will not be able to believe in the possibility of such monstrous effrontery and infamous misrepresentation in others; yes, even when enlightened on the subject, they will long doubt and waver and continue to accept at least one of these causes as true. Therefore, something of even the most insolent lie will always remain and stick — a fact which all the great lie-virtuosi and lying-clubs in the world know only too well and also make the most treacherous use of.

Hitler claimed that it was the Jews that employed the strategy of “the big lie.”  But the clear verdict of history is that it was he who did so.  And it was he who named Joseph Goebbels as his “Minister of Propaganda.”  It was the accuser who was the biggest liar of all.  Just like what the Democrats are doing now in their attacks.

Sadly, this is where the United States of America is today.  We are at a point where a major political party can use the strategy of “the big lie” to advance their political position.  And we are to a point where a liberal-dominated media will do everything it can to publish and perpetuate the big lie to the American people.

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