Is it possible that Barack Obama is in deep deep trouble? We are aware of his Community Organizing. He wears it like a badge of honor. We are aware that he has taken money from Fannie Mae. We are aware of his ties to ACORN (LINK). We are aware that a housing crisis has the economy on the brink.
What many may not be aware of is that all of these issues are related.
Thomas J. DiLorenzo is a professor of economic as Loyola University. He describes how community organizers used extortion to create the subprime mess. Here are some of the key points (LINK)
The thousands of mortgage defaults and foreclosures in the “subprime” housing market … is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call “communities of color” that they might not otherwise make based on purely economic criteria.
The original lobbyists for the CRA were the hardcore leftists who supported the Carter administration and were often rewarded for their support with government grants and programs like the CRA that they benefited from. These included various “neighborhood organizations,” as they like to call themselves, such as “ACORN” (Association of Community Organizations for Reform Now).
Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars.
if one browses the ACORN web site, one can read of their boasts of having “predatory lending laws” passed in numerous states which outlaw such fees, prohibiting banks from protecting themselves from the added risk involved in making forced loans to “subprime” borrowers.
These are price control laws, and price controls always cause shortages. Normally, banks would respond to such laws by extending fewer riskier loans. But in this case the banks are forced to continue making the marginal loans by their bureaucratic masters at the Fed and the other three federal bureaucracies… So-called predatory lending laws therefore force the banks to “eat” the losses. This is undoubtedly a contributing factor to the bankruptcy of dozens of mortgage lenders over the past year.
Do we really want a “Community Organizer” to run the country?
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[...] According to Michelle Malkin (LINK), Obama’s buddies at ACORN are in line to get $100 million dollar payout in this latest Washington Bail Out. ACORN should not be rewarded. The extortion by ACORN and other “community organizers” was a contributing factor to our financial crisis. (LINK) [...]