ARRA spots Major “Earmark” in Democrat Bailout Agreement

A couple of weeks ago, I wrote over at Ft. Hard Knox on the topic of the Bailout of Fannie/Freddie – a Move Toward Socialized Housing, and predicted at that time:

“…I cannot help but shudder a bit when I hear that the federal government has just seized two more major mortgage companies. I have to ask myself how long it will be before affirmative action and gay-rights activists will be suing the federal government for special considerations in neighborhood planning in lending practices? How long before banks and Realtors will be given special tax breaks and preference on corporate contracts according to their commitment to promoting the diversity doctrine?

“It won’t be long.”

It wasn’t long. The bailout hasn’t even happened yet, and Dr. Bill, over at …ARRA is reporting:

I received a copy of “Agreement in Principle” relative to the $700 billion “bailout” being proposed and supported by Senate Democrats. The one page agreement from the U.S. Senate Banking Committee details guidelines to be put in place relative to taxpayer protection, oversight and transparency, home ownership preservation and Funding Authority.

While on the surface the agreement looks generic and positive, However, the “devil is in the detail.” There is one detail that Democrats are concerned that Republicans will not agree to in the bailout agreement. That is if the Republicans even see the item. It seems that this issue may be one reason that many Democrats have hounded Sen. John McCain and pushed for his speedy approval. Senate Majority Harry Reid (D-NV) has already identified that it is Sen. John McCain’s approval, not Barack Obama approval, that is needed to secure the agreement of Senate Republicans. In fact, the questioned provision indirectly focus on some prior concern regarding Sen. Barack Obama involvement with various organizations. Maybe that is why Obama would prefer being at a debate in Mississippi than being in Washington D.C.

House Speaker Nancy Pelosi’s (D-CA) cohorts are also hounding Sen. McCain to agree. They know that neither the House Republicans nor the House Blue Dog Democrats are going to sign on easily to an agreement extending $700 billion “bailout” if Sen. McCain disagrees. Pelosi does not have control of the fiscally conservative Blue Dogs who are not happy with committing $700 billion to the “bailout” effort.

In the “agreement in principle,” there is the effect of a major “earmark” which commits money from future “profits” to be given to nonprofits organizations like ACORN, National Council of La Raza and potentially the National Urban League. This agreement clearly evidences that the Government expects to benefit in the future from the bailout when the values of property rises and mortgages or properties are then sold by the Federal government. The agreement –

“Directs a certain percentage of future profits to the Affordable Housing Fund and the Capital Magnet Fund to meet America’s housing needs.”
In the proposed bailout agreement, Sen. Christopher Dodd, the Senate Banking Committee and other Democrats desire to pre-direct that future funds (profits) not be returned to the taxpayers via the treasury but that they be used to underwrite potential questionable (maybe even illegal activities) of certain nonprofits which have had a hand in promoting and expanding access to “no money down” loans for minorities, illegal voter registrations and extensive lobbying activities.

Let’s examine the connection of the Affordable Housing Fund and the Capital Magnet Fund with the various nonprofit groups mentioned above…Continue reading on ARRA >>

Also see:What’s the Hold Up on the Bailout?