Will Pelosi’s second attempt at a bailout include ACORN? Update: Dow loses 777 points, more than on 9/11; Update: $1.1 trillion in market value lost

posted at 4:18 pm on September 29, 2008 by Allahpundit

Why not? She tried a bipartisan bill and got nothing for it. What’s stopping her from turning it into a Christmas tree for the left and passing it on a strict party-line vote? Bush will sign it regardless and Senate Republicans will be under tremendous pressure to decline a filibuster with the Dow down 600 points today and god knows where tomorrow. This is the flaw in the “if the majority thinks it’s so important, let them pass it” approach: They will pass it, on their terms, and they’ll point to Republicans like Gingrich and Paul Ryan and the Journal — and Paulson and Bernanke, of course — who’ve acknowledged this is an emergency to take credit for rescuing the economy. All they have to do is wait a few days until the public’s good and terrified and the polls on the bailout start to reverse. They’re reversing already.

A number of Republican House members and staff, along with others who are plugged in, are telling me that Nancy Pelosi and the Democrats will come back with a new bill that includes all the left-wing stuff that was scrubbed from the bill that was defeated today in the House.

As this scenario goes, the House Democrats need 218 votes, and they have to pick up a number of black and Hispanic House members who jumped ship because the Wall Street provisions, in their view, were too benign. So things like the bankruptcy judges setting mortgage terms and rates, the ACORN slush-fund spending, the union proxy for corporate boards, stricter limits on executive compensation, and much larger equity ownership of selling banks through warrants will all find itself back in the new bill. Of course, this scenario will lose more Republican votes. But insiders tell me President Bush will take Secretary Paulson’s advice and sign that kind of legislation.

House Republicans weren’t willing to swallow a bitter pill today so they’ll swallow a more bitter pill later this week. And guess what? They’ll still get killed at the polls in November. Bill Kristol thinks McCain’s only chance now is to stop campaigning (again) and come back to D.C. to try to drive through a compromise. If he succeeds, it’ll prove his leadership and calm the markets. I don’t see how he’s supposed to pull that off, though, when the entire Democratic leadership will be primed to whine about how he’s only making things worse by being there, is ruining delicate negotiations, etc. If Kristol’s serious about solving the crisis and willing to sacrifice electoral gain to do so, there’s an easy compromise solution: Have McCain and Obama do some sort of joint appearance, maybe a presser, urging support for a bailout. That’ll swing public opinion sufficiently to remove the political incentives to voting no and give Pelosi the 10 votes she needs to pass it now. There’s no gain for McCain at the polls in doing so, admittedly, but he’s the guy who preaches “country first.” Here’s his chance.

Update: This is day one.

The Dow closed the day down 777.68 points, or 6.89 percent, beating its previous record for an intraday drop of 721.56 points, set during the first trading day after the Sept. 11, 2001, terror attacks. Still, in percentage terms, the decline remained well below the more than 20 percent drops seen on Black Monday of October 1987 and the Depression.

“This is panic, and fear is running amok,” one trader told CNBC. “We are in a classic financial meltdown, and it’s panic-based. We’re seeing panic selling.”

Update: The wealth lost today on the market — just today — exceeds the cost of the bailout considerably.


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I can’t believe the class warfare on the right. You have no idea what you have wrought.

What I have wrought? The Dems and Wall Street caused this fiasco. I learned a long ago to invest in myself. If I want to gamble with my money I’ll go to Vegas. At least you get free drinks from cute waitresses while you lose your money.

Your nihilism is ignoble (although I suppose you, in your populist fevor fervor, will take that as a compliment).

I was raised by parents who lived during the Great Depression. I’ve had tons of “what if” scenarios drilled into me since I was a kid. I grew up in the 60′s and 70′s. The possibility of all nuclear war was a real possibility then. I grew up thinking ahead and thinking of survival.

None of what is going on is new or was unexpected at some point. Stock Markets crash. They always have and always will. Economies collapse. A single nuke launched from a cargo ship a couple of hundred miles off our coast and set off high above the USA will put us back into the stone age for months if not years. Instantly all electricity will be offline. Your ATM card useless. All banks closed. No gas. All refrigerated and frozen food goes bad in a day or two. No 911. No cops. No fireman. No way to get in contact with anyone beyond earshot. Roving gangs within a couple of days who will take what they want from you and your family. If you live in a large city you’re survival chances are practically nil. If it happens in the winter millions will die quickly. I am aware of all sorts of scenarios that could totally upset our civilization and I have prepared for it. I’ll never be ready for it.

and you won’t escape the consquences consequences of this day.

I, and by extension my family, can survive damn near anything. Comfortably.

Guardian on September 29, 2008 at 9:22 PM

Update: The wealth lost today on the market — just today — exceeds the cost of the bailout considerably.

And over $6 trillion was lost in the bursting of the dot com bubble. Should we have bailed them out for a pittance of $5 trillion?

Please don’t start equating market cap with government expenditures – it is a very silly argument.

progressoverpeace on September 29, 2008 at 9:22 PM

Please don’t start equating market cap with government expenditures – it is a very silly argument.

progressoverpeace on September 29, 2008 at 9:22 PM

Market cap helps to fill government coffers.

dedalus on September 29, 2008 at 9:25 PM

This is awesome. Wall Street’s AIG, Lehman & co act incredibly stupid, leveraging 30 to 1, (paying $1 for $30 of mortgage or Mortgage-back security liabilities), now those mortgages are bad, and Wall Street is screwed.

So the solution? “Spend taxpayer money to give back to Wall Street…………. for them to make incredibly stupid investments again!!!!!!!!!!!!!!!!!”

I shoulda gone into IB after college. I missed my calling. Give me an apartment in SoHo and a 6 day work week and I’d have made a cool million by now.

Seriously, what a joke. The same yahoos who bet the farm on “DERIVITAVES”, “HEDGE FUNDS” and who lost jillions in the asian markets crisis in 97 are expected to get it right “THIS TIME AROUND”>?>>> WITH MY MONEY>?
#@$#@% that.

battleoflepanto1571 on September 29, 2008 at 9:28 PM

Todays market? Buying opportunity. :)

paulsur on September 29, 2008 at 9:32 PM

Market cap helps to fill government coffers.

dedalus on September 29, 2008 at 9:25 PM

Heh. Of course, to a socialist government, whose credo is “What’s yours is mine and what’s mine is mine,” (and I certainly don’t accuse Allah of being anything near a socialist – just a bit frightened), market capitalization is owned by the government just like everything else, so for them it makes sense.

progressoverpeace on September 29, 2008 at 9:34 PM

Allah, you’re assuming much here. Such as thinking the democrats would have the guts to narrowly pass this on a straight party-line vote. Heh.

SouthernGent on September 29, 2008 at 9:41 PM

No reform, no bailout. Fooled me once. Shame on you. Somebody has to pay.

Angry Dumbo on September 29, 2008 at 9:45 PM

Today’s market, disaster, tomorrow’s worse. Cause: GOP arrogance and stupidity. Color it any way you like, spin it in any direction you care to–comes back to their door step and they will pay in November.

jeanie on September 29, 2008 at 9:48 PM

Fannie’s chickens comin’ home to roost!

Mojave Mark on September 29, 2008 at 9:50 PM

jeanie on September 29, 2008 at 9:48 PM

ya trust the gov’t to fix this?? can you even remember the last gov’t program that can be considered a success? the last one that didnt go over the allocated budget by multiples and multiples? you realize the private sector will buy those MBS that the gov’t is trying to buy. but the sellers know the gov’t will pay more which is why they are hollering for a bailout. dont give it them and they will sell soon enough.

chasdal on September 29, 2008 at 9:52 PM

Today’s market, disaster, tomorrow’s worse. Cause: GOP arrogance and stupidity. Color it any way you like, spin it in any direction you care to–comes back to their door step and they will pay in November.

jeanie on September 29, 2008 at 9:48 PM

Causes:

1. Dems fighting efforts to regulate FNMA/FRMC and calling those who tried to do so racists
2. 94 Dems not voting with their fearless leader today. Why didn’t they?

Marybeth on September 29, 2008 at 9:53 PM

Guardian on September 29, 2008 at 9:22 PM

I get, I get it. We ivy league monied types are the epitome of evil. And everyone who lives in a city somehow deserves to die. Well say hello to a permanent democratic majority. Say goodbye to the subsidies to the red states. Say hello to depression followed by a new wave of socialism. I hope you like President Obama.

phronesis on September 29, 2008 at 9:56 PM

Allah’s right. They’ve got nothing to lose and everything to gain. The Dems will charge like the cavalry and save the day.( if it can be saved) And why? Because the GOP cared more about their egos than the country,exhibited stupidity and petulance instead of self control and common sense. My response? Well, I USED to be a conservative until I began to see them up close and personal. I didn’t like what I saw.

jeanie on September 29, 2008 at 9:58 PM

jeanie on September 29, 2008 at 9:58 PM

not very convincing little troll. true conservatives are against this transition to socialism disquised as a rescue plan.

chasdal on September 29, 2008 at 10:01 PM

That’s funny!! DEMS not voting with their leadership, they did better than the GOP–but then the House has no GOP leadership except a few sore ass adolescents. Hello President Obama and First Lady Michelle.

jeanie on September 29, 2008 at 10:04 PM

not very convincing little troll. true conservatives are against this transition to socialism disquised as a rescue plan.

chasdal on September 29, 2008 at 10:01 PM

That means Allah, Ace, Ed( I think), Steve Forbes, Newt Gringich, the WSJ, and the heritage foundation aren’t true conservatives. You’re never going to win an election if you stick the shiv into all of us.

phronesis on September 29, 2008 at 10:05 PM

If the definition of true conservative is to drag this country into deep recession(or worse)then you’re right, I’m not one and rapidly becoming proud of it. Even in the face of disaster “conservatives” apparently just stand there and wallow in some kind of phony self-righteousness.

jeanie on September 29, 2008 at 10:09 PM

Allah’s right. They’ve got nothing to lose and everything to gain. The Dems will charge like the cavalry and save the day.( if it can be saved) And why? Because the GOP cared more about their egos than the country,exhibited stupidity and petulance instead of self control and common sense. My response? Well, I USED to be a conservative until I began to see them up close and personal. I didn’t like what I saw.

jeanie on September 29, 2008 at 9:58 PM

Stupid doesn’t begin to describe that crap jeanie. Nice try though, exactly what I’d expect from a Liberal who needs to be told how to think as well as what to say.

Keemo on September 29, 2008 at 10:17 PM

Additionally, whatever wall street wizards bought BAD MORTGAGES — with ADJUSTABLE RATES mind you — leverage about 1:30 (paying $1 for $30 of that liability) deserves to go bankrupt

if the market won’t punish bad decisions, more fortunes will be lost.

battleoflepanto1571 on September 29, 2008 at 9:17 PM

That’s the problem battle…the mortages weren’t clearly labeled with the biohazard logo and the Geiger counter returned negative results.

If you seriously think everyone in wall street is that stupid, you should buy a chair on the exchange because you’ve clearly got it figured out.

Economics is a wee bit more complex than some folks on here like to think. I hear they offer both undergraduate, and graduate degrees in it!

k2aggie07 on September 29, 2008 at 10:19 PM

I don’t have to try to be anything. The GOP has blown the election and nothing you or I say or do can change that now. So, call all the names you like and repeat all the platitudes you can scour up, even make a list of them so you can also use them on the Dems when they win in a landslide in Nov. I hope it gives you some comfort.

jeanie on September 29, 2008 at 10:24 PM

I love liberals. They claim the economy is in the sh#tter (worst economy ever, as was stated way back in 2004 up until today), which means that the Dow should be trading around 7,000, but then express outrage that it dropped to 10,000+. So, libs want us to know that we have “the worst economy ever” but then they bitch if the Dow isn’t trading around 12,000.

Could liberals please pick just one side of the argument to lose? You’re not allowed to lose both at the same time.

progressoverpeace on September 29, 2008 at 10:24 PM

progressoverpeace on September 29, 2008 at 10:24 PM

Yeah, that Steve Forbes is such a liberal.

phronesis on September 29, 2008 at 10:30 PM

I don’t have to try to be anything. The GOP has blown the election and nothing you or I say or do can change that now. So, call all the names you like and repeat all the platitudes you can scour up, even make a list of them so you can also use them on the Dems when they win in a landslide in Nov. I hope it gives you some comfort.

jeanie on September 29, 2008 at 10:24 PM

Your wrong, those House repubs did exactly what there constuents wanted them to do. They just had guts to stand up for them. It gives me hope that when everything is lined up against them stuff like this can be stopped.
They had the dems, media, buisness and senate and President against them and they won. God bless them
We heard the same bed wetting during the immigration debate if we did not pass it. Looks like we did ok on that one.
If you don’t like the Gop I hear Bob Barr and a commie named Barack is running. Try one of them

kangjie on September 29, 2008 at 10:39 PM

y’all trust what the congress critters are saying?? oh and allah and ed arent conservatives. they are rockefeller republicans at best. as for the heritage foundation, well its time to stop taking bad deals w/ the excuse “it could be worse” and start standing on conservative principles. if the mortgage paper to sell the feds are worth anything they should sell on the free market. but they know they can get more from the feds.

it just boggles the mind that you people trust those who created the mess to get us out. and they didnt even address how to keep it from happening again in this bill. you really want more regulations? thats what started this mess.

read this and remember, the scariest words you can hear are “we are from the government and we are here to help you”

chasdal on September 29, 2008 at 10:49 PM

the whole “wealth lost” argument is juvenile. Wealth isn’t lost, it merely moves around. The more I listen to the rantings and panic, the more I am licking my chops.

Calm Before the Storm on September 29, 2008 at 10:52 PM

Update: The wealth lost today on the market — just today — exceeds the cost of the bailout considerably.

Okay, except that isn’t taxpayer money which may or may not actually have any real positive effect. That’s what happens when people fear-monger about the economy and the bailout not passing – people get scared, there are runs on banks and things are even worse.

So you think we should make the taxpayer’s pay a trillion dollars for the stock market to finish up for maybe a day?

LyndsiM07 on September 29, 2008 at 11:05 PM

Wealth isn’t lost, it merely moves around.

OK, so who’s got the $1.3 trillion now? Where did it go? If you can tell me, you can win the Nobel Prize in economics.

The trouble with these conservatives is they are just smart enough to be dangerous. True wisdom comes when you know your limitations. Knowledge of economic matters is not your forte.

indythinker on September 29, 2008 at 11:17 PM

Calm Before the Storm on September 29, 2008 at 10:52 PM

um is this what your thinking of?

The First Law of Thermodynamics states that energy can neither be created nor destroyed.

what you mean is that every share sold was also a share that was bought. so while the market was free-falling there were still buyers out there. and many of them are grinning at the bargains they are getting.

chasdal on September 29, 2008 at 11:28 PM

Finally summoned the strenght to watch Pelosi’s speech, she is beneath whore status, beyond description, speechless! Now on C-span her response to the bills failure.

dmann on September 29, 2008 at 11:33 PM

Pelosi….We delievered on our side of the bargin, wow she understands modern math, we – 93 votes = republican failure!

Shameless tramp!

dmann on September 29, 2008 at 11:37 PM

1. It is somewhat pitiful that three of the four folks representing the Democrats/Republicans on the Presidential ticket are from this failure we call a Congress.
2. Just wait and see: 90% of Congressional incumbents will get reelected.
3. Pelosi is a fine example of the reason to not base one’s vote on gender, skin tone, or anything else besides character, intelligence, demonstrated leadership, and relevant experience.

Send_Me on September 30, 2008 at 12:36 AM

I get, I get it. We ivy league monied types are the epitome of evil. And everyone who lives in a city somehow deserves to die.

Dude. I said no such thing. You’re projecting.

Well say hello to a permanent democratic majority. Say goodbye to the subsidies to the red states. Say hello to depression followed by a new wave of socialism. I hope you like President Obama.

If the economy tanks it won’t matter who’s in charge. The sinking ship cares not which captain is at the helm. It sinks regardless. Whoever wins this election is screwed out of the gate.

A depression is one thing. An all out economic collapse is quite another. There’s no way we will ever accept socialism. Socialism, aka the policies forced on the banks by the Dems to give loans to unqualified buyers and termed “Fair Housing”, is the root cause for this mess.

Personally I don’t think this “crisis” is near the problem everyone is making it out to be.

Guardian on September 30, 2008 at 12:44 AM

Heh. Of course, to a socialist government, whose credo is “What’s yours is mine and what’s mine is mine,” (and I certainly don’t accuse Allah of being anything near a socialist – just a bit frightened), market capitalization is owned by the government just like everything else, so for them it makes sense.

progressoverpeace on September 29, 2008 at 9:34 PM

Our IRS says “what’s yours is mine”–or at least 35% at the top margin. When the IRS is done with you, your state might take a cut and then your town will take a big bite just for letting you live on your property.

Losing tax revenue from the market will make it harder to make the Bush tax cuts permanent. $1.4 trillion of gains were wiped out today–both the investor’s cut and the IRS’s.

dedalus on September 30, 2008 at 12:45 AM

Anyone have any popcorn? My supply was all used for ethanol.

N4646W on September 30, 2008 at 12:57 AM

dedalus on September 30, 2008 at 12:45 AM

Perhaps. Don’t forget, these are generally capital gains, and no taxes are even assessed until the stocks are sold. I’m not sure that the impact on tax revenue is as large as you imply. If people were selling long held stocks that had appreciated quite a bit, then there could be a revenue bump from this. Just a conjecture on my part, though.

In any event, an overvalued market helps no one – not in the long term – no matter how much illusory wealth disappears. At least, that’s my view on it.

progressoverpeace on September 30, 2008 at 1:16 AM

the market acted today like South Central did after the Rodney king verdict

the market had a hissy fit today. they had a riot. the problem is not that there isn’t any credit. the problem is that credit is getting expensive. Wall street is facing what middle class has faced over the last couple of years. we had our main commodity go up in price. gas. we need gas to get to work, to live our life. It is our lifeblood. when gas went from $1.5 to $4.00 the middle class had to downsize, we had to cut back, get a new job, etc.

the credit crunch is that the price of credit is going up. Credit is the Street’s lifeblood. Instead of doing what the middle class did and tighten its belt, cut back, change business practices etc the Street decided to act like the poor. They had a riot.

that is what this boils down too. Credit is out there you just have to pay more for it which means that there will be less of it. yes it will hurt companies expansion plans, it will hurt day to day operations, it will require cutting back in employees and it extra’s. it will require companies to use its own cash more and not charge everything. I wonder what would have happened to gas prices if the middle class had a riot. would the gov have come in and bailed us out? would they have given us $700b so we could buy more gas? or would they have sent in the army?

For some reason i don’t think it would be the former but more like the latter.

unseen on September 30, 2008 at 1:43 AM

I think it is an opportune time to come into the market if the Dow plunges another 10-15%. Stay off financial stocks perhaps but pharmaceuticals should be okay. Lots of people require medication after this meltdown.

Birdseye on September 30, 2008 at 3:54 AM

Here’s an interesting chart of the VIX (volatility index) vs the DJIA. The VIX is a measure of investor sentiment. Spikes in the VIX are associated with panic selling. Note the correlation between spikes in the VIX and major market bottoms. Of course, for those who believe that ‘things are different this time’ – that we’re on the eve of financial Armageddon – this is meaningless. Things are always different this time.

RedWinged Blackbird on September 30, 2008 at 5:32 AM

Anyone get the feeling that right about now Eddie Murphy and Dan Aykroid are standing in the pit about to calmly say…”buy”.

MechEng5by5 on September 30, 2008 at 9:38 AM

Markets up – Congress takes day off. Coincidence? I think not.

Queen0fCups on September 30, 2008 at 10:32 AM

Birdseye on September 30, 2008 at 3:54 AM

and that should continue throughout the elction and its aftermath – especially if McCain wins… we know how much the left likes their meds. Especially the ones that quiet paranoid delusions.

Queen0fCups on September 30, 2008 at 10:34 AM

UPDATE 10:09 AM EST $337,000,000,000 GAINED

FOr you $1.1 trillion “lost” folks from yesterday, just wanted to let you know that without ANYTHING from Congress ttoday, $337 billion was created this morning by the surge in the Dow.

Stev0 on September 30, 2008 at 11:01 AM

I think Democrats and the left wing media have outmaneuvered Mc Cain and Republicans. What angers me is the lack of response from the McCain people.

pukara61 on September 30, 2008 at 11:08 AM

Stev0 on September 30, 2008 at 11:01 AM

Yeah.

So AP, if the stock market gains 500 points today, will you make a post that 800 billion dollars were made today?

I didn’t think so.

lorien1973 on September 30, 2008 at 11:27 AM

Stev0 on September 30, 2008 at 11:01 AM

basing economic policy on the fits of the stock market is wrong. both on up days and down days.

i refuse to held hostage by the fits of the wealth class.

unseen on September 30, 2008 at 1:23 PM

Allah needs to go back to school and study economics. It shows.

Sapwolf on September 30, 2008 at 1:31 PM

Anyone have any popcorn? My supply was all used for ethanol.

N4646W on September 30, 2008 at 12:57 AM

Now that’s funny. Good one.

Sapwolf on September 30, 2008 at 1:33 PM

Miers, Immigration, now the mother of all federal bailouts.

Reagan 101: Government is not the solution it is the problem.

Like the Shanklin parody song: “Where have all the conservatives gone?”

Angry Dumbo on September 30, 2008 at 3:14 PM

AP. Dow up almost 500 pts. Time for a thread update?

Mr_Magoo on September 30, 2008 at 3:53 PM

Well, this sounds like some good news, from the Washington Post:

The Securities and Exchange Commission and the Financial Accounting Standards Board have just made an announcement that, dry as it sounds, may mean a great deal: “When an active market for a security does not exist, the use of management estimates that incorporate current market participant expectations of future cash flows, and include appropriate risk premiums, is acceptable.”

The SEC is not telling holders of hard-hit mortgage-backed securities that they can willy-nilly slap any value on them they want.

What the SEC is saying is: You can take other factors into account when valuing them.

Sounds like they are relaxing on mark to market, at least to some extent. That is a substantial factor in the liquidity problem.

Vashta.Nerada on September 30, 2008 at 6:18 PM

Someone has to pay ACORN to help steal the election and Nancy isn’t going to write a check.

moxie_neanderthal on September 30, 2008 at 9:12 PM

“ACORN, the Association of Community Organizations for Reform Now, is the nation’s largest community organization of low- and moderate-income families, working together for social justice and stronger communities.”

This statement appears on the home page of ACORN to describe their mission. The organization, which was founded in the early 1970s, consists of some 350,000 families and is located in approximately 100 cities in the US, Canada, Dominican Republic and Peru (Take Back America 2007 website). Under the leadership of its president, Maude Hurd, this group is involved in numerous activities including amnesty for illegal aliens and attacking Walmart. More importantly, however, they are involved in housing issues, voter registration, and advocating for sub-prime motgage loans to low-income home buyers.

Maude Hurd is a long-time community advocate for the poor. She has been active in recent years negotiating with banks to re-invest in low-income communities and to provide loans to first-time home buyers.

In reality, ACORN is pretty much an arm of the Democratic Party-especially when it comes to voter registration. That portion of their activity has led to numerous accusations in many states of fraudulent voter registration-a charge ACORN denies. In addition, ACORN has, over the years, been linked to radical left political ideology.

This is what Michelle Malkin has to say about ACORN:

“This left-wing group takes in 40 percent of its revenues from American taxpayers – you and me – and has leveraged nearly four decades of government subsidies to fund affiliates that promote the welfare state and undermine capitalism and self-reliance, some of which have been implicated in perpetuating illegal immigration and encouraging voter fraud. A new whistleblower report from the Consumer Rights League documents how Chicago-based ACORN has commingled public tax dollars with political projects.”

And there is this:

“In recent months alone, the chief organizer of ACORN was forced to resign over the cover-up of a $1 million embezzlement scandal involving his brother. As internal whistleblower documents recently revealed, ACORN and its offshoots may have reaped substantial financial gains by misusing taxpayer dollars for political ends and by attacking lending corporations for the same so-called “predatory” lending practices ACORN regularly engages in. In 2008 alone, ACORN’s voter registration activities have spawned investigations in almost a dozen states, sometimes involving tens of thousands of invalid or fraudulent registrations.”

James Terry, Chief Public Advocate
Consumer Rights League
9-29-08

The above statement is in reference to Dale Rathke, the brother of ACORN’s founder, Wade Rathke. On July 9, 2008, the New York Times reported that in 2001, Dale was found to have embezzled just under 950,000 dollars from ACORN and affiliated organizations. The incident was covered up and not reported to law enforcement authorities. Wade Rathke told the Times that the incident was kept secret so as not “to put a weapon into the hands of conservatives” (who opposed ACORN’s activities). The funds were returned, and both of the Rathke’s have since left the organization.

Of course, with the bailout mess in progress, largely due to sub-prime loans made to individuals who could not afford to repay them, ACORN’s name has surfaced in recent weeks since they have been an active lobby for such lending practices. ACORN’s current position is that the financial scandal is due to “predatory lending practices”.

In terms of voter registration, ACORN has been accused of engaging in fraudulent registration in several states. The Wall Street Journal reported on November 3, 2006 that in the week prior to the mid-term elections, four ACORN workers were indicted by a federal grand jury for submitting false voter registration forms to the Kansas City Election Board. According to the article, other ACORN workers have been convicted in Wisconsin and Colorado for similar offenses, while investigations were on-going in Ohio, Tennessee and Pennsyvania, as well as on a national level by the Justice Department.

In addition, last July, ACORN settled the largest case of voter fraud in the history of Washington State. In this case, seven ACORN workers submitted approximately 2,000 fraudulent voter registration forms. It was revealed that ACORN personnel had literally let their fingers do the walking through the white pages looking for names and submitted some imaginative names to boot, such as Leon Spinks. Three ACORN members pleaded guilty. A King County prosecutor termed it as, “an act of vandalism upon the voter rolls”. (“The Acorn Obama Knows” by Michelle Malkin, which was posted on Real Clear Politics 6-25-08)

What is really astounding, given the organization’s claim of being non-partisan-they claim to get no government funding and are not tax-exempt-is that ACORN’s name arose in the draft version of the bailout bill.

“The draft bill includes a left-wing giveaway that would force taxpayers to bankroll a slush fund for a discredited ally of the Democratic Party,” reads one leadership alert. “At issue is ACORN, an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. Rather than returning any profits made in the long-term from the economic rescue package, Democrats want to first reward their radical allies at ACORN for their (often illegal) help in getting Democrats elected to office.” (CBS News website quoting Republican sources)

(In the face of Republican outrage over this provision, it was removed.)

It appears that ACORN’s claims of receiving no government funding are a bit of a stretch. One of their subsidiaries, the ACORN Housing Corporation, has reportedly received $1.6 million from the Dept of Housing and Urban Development (Malkin). It also appears that their claims of non-partisanship are a joke, to put it mildly. Ms Hurd has been publicly quoted as saying,

“Obama is the candidate who “best understands and can affect change on the issues ACORN cares about”.

The attempt by the Democrats at directing money to ACORN in the bailout bill puts the lie to the sanctimonious claims of people like Nancy Pelosi and Harry Reid that Republicans have inserted partisan politics into the crisis.

Finally, it might also be noted that much of Barack Obama’s mysterious years as a community organizer in Chicago are tied to ACORN, with whom he worked and to whom he gave training classes during those years.

Stanley Kurtz, in National Review Online, has spelled out Obama’s past relationship with ACORN. According to Kurtz’s article, Obama was brought into a relationship with ACORN by Chicago community activist, Madeleine Talbot. Ms. Talbot was one of six people arrested on July 31, 1997, when about 200 ACORN protesters tried to storm a session of the Chicago City Council. She reportedly recruited Obama to provide training to ACORN leaders. This relationship with ACORN continued during Obama’s years in the Illinois State Senate.

In addition, the New York Times reported on May 11, 2008 that while Obama served on the board of the Woods Foundation and the Joyce Foundation, he helped direct tens of millions of dollars to ACORN and other community organizations. (NYT article by Jo Becker and Christopher Drew dated May 11, 2008). It was on the Woods Foundation that Obama worked with former Weatherunderground radical William Ayres.

In summary, it is crucial that voters know about this organization, its questionable activities, and its historical relationship with Barack Obama before they go to the polls in November. Who knows how many bogus voter registrations have already been submitted in preparation for getting Obama elected?

The public should also ask itself why the Democratic Party was so intent on getting ACORN into the receiving line for government funding in connection with the (still-pending) bailout bill? It doesn’t take a lot of imagination to connect the dots.

gary fouse
fousesquawk

gary fouse on September 30, 2008 at 10:23 PM

How does a bankrupt nation help “poor communities”?

Also… this isn’t a bad idea at all: Dave Ramsey 3 Steps

Basics are in the PDF file.

electric-rascal on October 1, 2008 at 12:36 AM

electric-rascal on October 1, 2008 at 12:36 AM

Dave Ramsey also said this morning that if the bailout passes, McCain loses the election.

Vashta.Nerada on October 1, 2008 at 9:04 AM

In 2006, for example, ACORN registered 1,800 new voters in Washington. The only trouble was, with the exception of six, all of the names submitted were fake. The secretary of state called it the “worst case of election fraud in our state’s history.” As Fox News reported: “The ACORN workers told state investigators that they went to the Seattle public library, sat at a table and filled out the voter registration forms. They made up names, addresses, and Social Security numbers and in some cases plucked names from the phone book. One worker said it was a lot of hard work making up all those names and another said he would sit at home, smoke marijuana and fill out the forms.”

ACORN explained that this was an “isolated” incident, yet similar stories have been reported in Missouri, Michigan, Ohio, and Colorado — all swing states, by the way. ACORN members have been prosecuted for voter fraud in a number of states. (See http://www.rottenacorn.com.) Their philosophy seems to be that everyone deserves the right to vote, whether legal or illegal, living or dead.

Mona Charen at NRO

The Democrats 5th 6th column.

moxie_neanderthal on October 1, 2008 at 9:56 AM

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