Democrats Un-Shameable

Republicans reject Democrat's proposal to continue the cause of the problem
Despite the severity of the problem facing the American economy, the Democrats are still attempting to finagle the establishment of what effectively is a slush fund for Democrat largess, and the root cause of the Financial Sector meltdown - sub-prime loans!

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:

Graham told Greta van Susteren that Democrats had their own priorities, and it wasn’t bailing out the financial sector:

Here’s the relevant part of the Dodd proposal:

TRANSFER OF A PERCENTAGE OF PROFITS.

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.

That being said, this section proves that the Democrats in Congress have learnednothing 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 innocentexplanation for this clause.

The real purpose of section D is to send more funds to La Raza and ACORN through housing welfare, via the slush fund of the HTF.  They want to float their political efforts on behalf of Democrats with public money, which was always the purpose behind the HTF.  They did the same thing in April in the first bailout bill, setting aside $100 million in “counseling” that went in large part to ACORN and La Raza, and at least in the former case, providing taxpayer funding for a group facing criminal charges in more than a dozen states for fraud.

Thanks to the folks at hotair.com for this story.
http://hotair.com/archives/2008/09/26/the-democratic-acorn-bailout/trackback/