Saturday, September 27, 2008

Democrats Earmark Bailout Money To Left-Leaning Political Nonprofits

One would think the Democrats in Congress would be primarily concerned with ensuring that all the money recovered from the government take-over of bad mortgage debt would be returned to the U.S. Treasury. Instead, a provision tucked away in the proposed bailout legislation would divert billions to nonprofit organizations like ACORN, the National Council of LaRaza and the National Urban League. ACORN has close ties to Sen. Obama and has a long history of criminal voter registration activities on behalf of Democrats. Here's the provision that is raising the concern:

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.

The Wall Street Journal had an article in July discussing how the housing bill passed by Congress and signed into law by President Bush would allow potentially billions to be diverted to partisan, nonprofit organizations like ACORN. This is the same legislation which allowed a $29 million grant to be awarded to the City of Indianapolis to deal with the problem of abandoned and foreclosed homes. The money recovered from the bailout should be used to pay back the Treasury for this enormous new debt. It's obvious the Democrats are more interesting in funding groups which will help them win elections than restoring financial stability to the country.

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