Thursday, September 17, 2009

ACORN Born of Peanuts

ACORN, the criminal and corrupt community organization to which Lord Obama hitched his rising star, has been intimately involved in the mortgage crisis that led to the Global Financial Meltdown this past year.

In a penetrating article in Real Clear Markets, Steven Malanga exposes the long history of strong arm tactics, threats, and extortion since the 1977 Community Reinvestment Act became law under President Jimmy Carter.

Acorn found its way into the mortgage business through the Community Reinvestment Act, the 1977 legislation that community groups have used as a cudgel to force lenders to lower their mortgage underwriting standards in order to make more loans in low-income communities. Often the groups, after making protests under CRA, were then rewarded by banks with contracts to act as mortgage counselors in low-income areas in return for dropping their protests against the banks. In one particularly lucrative deal, 14 major banks eager to put CRA protests behind them in 1993 signed an agreement to have Acorn administer a $55 million, 11-city lending program. It was precisely such agreements that helped turn Acorn from a network of small local groups into a national player. And Acorn hasn't been alone. A U.S. senate subcommittee once estimated that CRA-related deals between banks and community groups have pumped nearly $10 billion into the nonprofit sector.

Congress passed CRA in 1977 as legislation designed to prompt banks to lend more in lower income areas which advocates claimed were being ignored. Gradually over time community groups learned they could use the law as leverage to negotiate new inner-city lending programs with banks based on lower underwriting standards, which the groups demanded when banks complained that one reason they weren't doing more lending in some neighborhoods was because few applicants in those areas qualified for loans under traditional criteria.

Acorn led the way in this movement. In 1986, for instance, it protested a potential acquisition by Louisiana Bancshares, a Southern institution, until the bank agreed to new, "flexible credit and underwriting standards" for minority borrowers which included counting public assistance and food stamps as income in mortgage applications.

Acorn also put pressure on the two quasi-government purchasers of mortgages, Fannie Mae and Freddie Mac, to lower their standards, complaining that they were "strictly by-the-book interpreters" who stood in the way of new lending programs. Under pressure both organizations committed to backing billions of dollars in affordable housing loans under so-called "alternative qualifying" programs which approved loans to individuals who didn't qualify under traditional standards, including those who agreed to go to mortgage counseling classes run by community groups like Acorn.

The threat of CRA proved an effective tool in gathering non-bank lenders into this affordable lending maelstrom, too. In late 1993 President Clinton's Secretary of Housing and Urban Development, Henry Cisneros, announced a plan to boost homeownership in the U.S. through a series of government initiatives, including having government subsidize mortgages that required no down payments. To produce more of these new, riskier loans Cisneros proposed expanding CRA to cover mortgage lenders and other financial institutions that were not chartered banks. In Congress Rep. Maxine Waters dubbed mortgage companies "egregious redliners" who needed to be corralled by CRA.

Under pressure from these threats, the trade group that represented mortgage bankers announced an agreement with HUD to sharply boost lending in low-income areas. These mortgage bankers, the so-called non-bank lenders, agreed to "voluntarily" help develop new mortgage products with laxer underwriting standards. The first member of the trade group to sign onto the new program was Countrywide Financial, which partnered with Fannie Mae to commit to $2.5 billion in lending in minority communities under new, lower standards.

Over time, the mortgage industry not only developed new products based on these lower underwriting standards but eventually allowed many borrowers to qualify for such loans under the reasonable assumption that if they were "safe" for low-income borrowers they were certainly safe for middle and upper income borrowers, too.
Read the whole story, Acorn's a Creature of the CRA.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

Wednesday, September 16, 2009

ACORN Obama Ties Fraying

ACORN, the community organizing group, suspended operations today in the aftermath of a series of devastating videos. The organization that was instrumental in the election of Barack Obama to the office of Presidency of the United States of America is in major legal trouble after a series of investigative videos by activist filmmaker James O'Keefe.

While acting as a community organizer after law school, Lord Obama did pro-bono legal work for ACORN including teaching ACORN classes. He denied both activities, then minimized his activities to just legal advice until this photo was revealed.

Last Friday, the Census Bureau cut all ties with ACORN because of charges of voter fraud during the campaign, operating in Maryland without a license, and finally the videotapes below.

The Senate voted to withdraw all federal funding to ACORN despite Lord Obama's support for the groups activities. The White House is scrambling like mad to put as much distance between Lord Obama and the criminal organization ACORN that put him in office.

ACORN Washington, D.C. Child Prostitution Investigation, Part 1

Wash, D.C. Part 2

Big Government/You Tube
ACORN New York City Child Prostitution Investigation, Part 1

Big Government/You Tube
NYC, Part 2

Big Government/You Tube
ACORN San Bernardino, California Child Prostitution Investigation, Part 1

ACORN San Bernardino, California Child Prostitution Investigation, Part 2

ACORN San Bernardino, California Child Prostitution Investigation, Part 3

Big Government/You Tube
Franklin Roosevelt had his Brain Trust, John Kennedy his Best and Brightest. Barack Obama sold them as his Bold and Beautiful, we now see them for what they are - Criminal and Corrupt.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

Democrats Ban Free Speech on House Floor

If that were all one were to read one would be right to be angry with House Democrats. One would also be dead wrong. The Democrats in the House of Representatives did no such thing.

Yesterday, Drudge Report linked to a Glenn Thrush story in Politico called "House guidelines for Presidential put downs" in which Thrush wrote (link on "primer" in original),
"House Rules Committee Chairwoman Louise Slaughter (D-NY) has released a helpful, updated primer for members regarding their conduct on the floor and in committees."
That's almost all true. The problem is "updated." The story provides no reference to any updates or any changes made recently. The timing of the Politico story on the same day Rep. Joe Wilson was rebuked by the House has left many believing House Democrats are on the warpath to stifle the free speech of House Republicans and, by extension, render the 1st Amendment void.

The "primer" link goes to the Slaughter memo. Rep. Louise Slaughter is Chairwoman of the House of Representatives Committee on Rules. The "Decorum in the House and in Committees" is part of her duties including notifying and reminding all members of existing rules.

That's right - EXISTING rules. Quoting from the memo, "As stated in Cannon’s Precedents, on January 27, 1909, the House adopted a report in response to improper references in debate to the President."

1909?! Good lord, that's 100 years ago. And the rules were a response to some debate concerning the President at that time. In January 1909, the president was Theodore Roosevelt, the 60th Congress was in session, and both House and Senate were Republican majorities. It stands to reason then that the rules being horsewhipped today as Democrat conniving are the result of Republican efforts. (Ed. note: the person of Indigo Red is a registered Republican who hates dishonsety from any quarter.)

The Slaughter memo goes on, and this is where the errant public anger has it's genesis as well as the apparent fact, few readers of the Thrush piece actually read the linked memo text which clearly stated,

As stated in Cannon’s Precedents, on January 27, 1909, the House adopted a report in response to improper references in debate to the President. That report read in part as follows:

"It is... the duty of the House to require its Members in speech or debate to preserve that proper restraint which will permit the House to conduct its business in an orderly manner and without unnecessarily and unduly exciting animosity among its Members or antagonism from those other branches of the Government with which the House is correlated.”

As a guide for debate, it is permissible in debate to challenge the President on matters of policy. The difference is one between political criticism and personally offensive criticism. For example, a Member may assert in debate that an incumbent President is not worthy of re-election, but in doing so should not allude to personal misconduct. By extension, a Member may assert in debate that the House should conduct an inquiry, or that a President should not remain in office.

Under section 370 of the House Rules and Manual it has been held that a Member could:

refer to the government as “something hated, something oppressive.”[a comedy tonight!]
refer to the President as “using legislative or judicial pork.”
refer to a Presidential message as a “disgrace to the country.”
refer to unnamed officials as “our half-baked nitwits handling foreign affairs.”
Likewise, it has been held that a member could not:

call the President a “liar.”
call the President a “hypocrite.”
describe the President’s veto of a bill as “cowardly.”
charge that the President has been “intellectually dishonest.”
refer to the President as “giving aid and comfort to the enemy.”
refer to alleged “sexual misconduct on the President’s part.”
This morning I contacted Rep. Slaughter's office to ask what the "updates" were and, indeed, if any changes had been made. I was informed the memo was simply a reiteration of existing 100 year old House Rules and Decorum. From time to time, members must be reminded of the rules.
I also contacted my Republican Congressman's office. Again, I was told the rules have not been updated or changed.

I am sure Glenn Thrush had no intention of leading anyone to believe House Democrats were out to limit free speech or stifle House Republicans. It was a surprise to me to verify the rules in question have stood for one hundred years and nine months nearly unchanged through several majority party changes apparently because of some inherent doctrine of mutually assured vengeance.

There were no rules changes. Both Republicans and Democrats can continue saying whatever they want within the bounds of common decency. This was a tempest in an already tempestuous Tea Party teapot.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

Americans Should Not Be Forced to Choose Between Health Insurance and Really Cool Stuff

Lord Obama has said there are 47 million uninsured stories in the Naked City. These are some of those stories -

Reason.TV You Tube
Recently the number of uninsured stories in the Naked City has been downgraded to 30 million. Apparently, a bunch of naked folks found some clothes. More probable, they were the 17 million people here illegally, not Americans, therefore should not have been counted as "Americans" without health insurance in the first place and young people who, as we all know, are invincible.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

Tuesday, September 15, 2009

9/12 Taxpayer March on Washington

Americans who marched in Washington, D.C. last Saturday have been called everything from teabaggers to Patriots. But, who were they really? Cranks who think Obama is Hitler, Democrats, Republicans, Libertarians, or just honest, hard working, tax paying Americans fed up with political dog and pony shows, Reason.TV went to find out.

Best sign from 9/12 -

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

It Is About Lord Obama's Color

Not skin color. Don't give a tinker's dam about his skin color. Lord Obama is Socialist red, Communist red, Lenin red, Marx red. Frank Marshall Davis, Bill Ayers, Bernadine Dohrn, Jeremiah Wright, Van Jones, ACORN red. Obama is red through and through.

Bookworm writes,
"Things have gotten so bad when it comes to charges of racism concerning our post-racial president that we’re now told that even our lily-white American babies are racists.

Well, I have a confession to make. Here it is. All of the liberal pundits are correct. I do have a big problem, a really big problem, with Obama’s color. But my problem isn’t the color of Obama’s skin, which is completely irrelevant to me. Instead, it’s with the color of his politics. With every passing day, Obama is proving to be an old-fashioned Red – a true, bone-deep socialist.


What is relevant is the fact that everything I read about what Obama says, what Obama does, and who Obama chooses for his friends shows me that his real color, the color that transcends his skin and defines who he is, is RED, RED, RED.
Since 1775, when Samuel Johnson uttered, "Patriotism is the last refuge of a scoundrel," it was assumed to be true and for 234 years it was. In the post-racial America of Lord Obama, racism is the last refuge of a scoundrel. The Lord Obama's acolytes are wearing thing the race card of last resort.

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

Monday, September 14, 2009

Obama Moves Into Wall Street, Declares Final Demand

Obama celebrated the one year anniversary of the collapse of Lehman Brothers this morning. He spoke at New York City's Federal Hall on Wall Street concerning banking reform in the United States and enjoined the world banking system to get on board with regulatory reform.

The speech in short:

Memorable laugh lines:

I've always been a strong believer in the power of the free market.

I believe that jobs are best created not by government, but by businesses and entrepreneurs willing to take a risk on a good idea.

I believe that the role of government is not to disparage wealth, but to expand its reach...

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.