Sunday, September 28, 2008

Manufactured Crises and the leftwing Obama strategy

Barack Obama and the strategy of the manufactured crisis is a must-read that ties in Barack Obama's left-wing community activist roots to ACORN and the creation of the current subprime mortgage crisis:

ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.
The article ties together the loose connections between the various leftwing groups that have been supporting Obama and supporting the leftwing causes that Obama has supported. As comment on the article notes: "Obama represents a very serious threat because he is the first virus from a virulent strain of Alinsky activism to infect successfully our national political processes." The first, at least, to actually be in the White House.

The seed of this crisis was planted by ACORN and their push for sub-prime lending with the CRA. CRA led to massive increases in subprime lending, and massive increases in subprime lending is at the root of this.

ACORN was represented by Barack Obama when he was a leftwing community activist. Barack Obama was the attorney representing ACORN in their effort in the 1990s to loosen lending standards. The efforts by ACORN worked. 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. The company was Countrywide, which became an infamous example of irresponsible subprime lending, and also managed to corrupt Congressmen like Sen Chris Dodd with sweetheart loan deals.

Bad underwriting was getting hidden by corrupt CEOs like Franklin Raines and Jim Johnson at Fanne Mae and hackles were raised. But Democrats turned back the efforts to reofrm Fannie Mae. In 2005, Obama protected Fannie Mae when McCain and Republicans wanted better oversight of them. Fannie Mae underwrote close to a trillion in subprime loans in the past 4 years, inciting the current mortgage crisis.

We come full circle from the current crisis in the financial markets to Obama's earliest days as a left-wing activist in Chicago. Putting leftwing activist Obama in charge is rewarding incompetence, corruption and bad intentions. It’s like putting an arsonist in charge of the fire department. The pro-Obama media will not tell the truth about Obama’s links to ACORN and CRA, and will not point out the serious links.

1 comment:

Anonymous said...

Mona Charen hits the same theme and channels my thoughts: