Posted on 09/26/2008 6:11:36 AM PDT by Ernest_at_the_Beach
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:
In the Roosevelt Room after the session, the Treasury secretary, Henry M. Paulson Jr., literally bent down on one knee as he pleaded with Nancy Pelosi, the House Speaker, not to “blow it up” by withdrawing her party’s support for the package over what Ms. Pelosi derided as a Republican betrayal.
“I didn’t know you were Catholic,” Ms. Pelosi said, a wry reference to Mr. Paulson’s kneeling, according to someone who observed the exchange. She went on: “It’s not me blowing this up, it’s the Republicans.”
Mr. Paulson sighed. “I know. I know.”
Graham told Greta van Susteren that Democrats had their own priorities, and it wasn’t bailing out the financial sector:
And this deal that’s on the table now is not a very good deal. Twenty percent of the money that should go to retire debt that will be created to solve this problem winds up in a housing organization called ACORN that is an absolute ill-run enterprise, and I can’t believe we would take money away from debt retirement to put it in a housing program that doesn’t work.
Here’s the relevant part of the Dodd proposal:
TRANSFER OF A PERCENTAGE OF PROFITS.
- 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).
- USE OF DEPOSITS.Of the amount referred to in paragraph (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
- 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.
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.
OK,...now I like that this blowup happened.
ACORN is part of the problem, why should they share in the solution? This is nuts.
I thought I pinged you to this?
http://www.freerepublic.com/focus/f-news/2090926/posts
It is very clear now that socialist front organizations will be the actual beneficiaries right after the crony capitalists. This is an utter sham.
There IS a crisis- I have no doubt of that. The proposed solution will ensure short AND long term catastrophe.
Is it any WONDER the libs wanted this RUSHED through?
fyi
Nothing like rewarding the groups that got us into this mess in the first place.
Another great example of what a community organizer does.
I’m not awake yet.....
The Rats over-reached trying to stuff Paulson’s plan with a bunch of this kind of stuff —just the sort of thing that is at the root of the financials meltdown. (Money for Acorn et al has to be a dealbreaker for any sane person)
Now they’re trying to spin it as “McCain showing up caused the breakdown of the deal”. That oleagenous weasel Rahm Emanuel started this line of spin last night on CNBC with Kudlow.
When I first found this at 6 am (eastern!) I found a cup of coffee unnecessary for a whole hour!
Unreal, isn’t it?
Elections Officials Look Into Voter Fraud
WESH
http://www.freerepublic.com/focus/f-news/2089446/posts
McCain Fears Voter Fraud (Not Danforth!!)
Newsmax
http://www.freerepublic.com/focus/f-news/2090265/posts
ACORN’s Lawyer - Guess Who?
Fox News-John Fund-9/26/08
http://www.freerepublic.com/focus/f-news/2090947/posts
I hate the DemonicRats!
The Talking Point needs to be that even at such a critical time, Democrats are not acting in the interests of the taxpayers, when they sneak in funding to partisan groups such as ACORN at the expense of taxpayers.
Anything the dims want rushed through (and Paulson is a dim) is always bad for the country and for taxpayers.
I haven't understood all this all along. Non of this has made any good sense since it began. I knew there was something fishy about it.
Good. Gad.
My advice to Paulson: Grow a pair.
This directly connects why Obama was put up as the democrat party candidate. This links the anti-American ACORN to Obama and unfettered power. I pray that some honest reporter somewhere will start to look into this.
Yummy!!
Anyone here who calls your Senator or Congressman today, be sure you tell them "NO ACORN SLUSH FUND" in this legislation.
REPORT: LA grand jury probing Countrywide VIP loans (includes all the DEM suspects)
Thank God the Republicans called BS on this nonsense and stopped this train from going right off the tracks.
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