A) Based upon a 1966 article by two neo-Marxist professors (Richard Cloward and Frances Piven of NYC’s Columbia University) advocating a (GNI) or guaranteed national income as the solution to poverty in America . . . Cloward, Piven and George Wiley created the (NWRO) National Welfare Rights Organization in 1967 to test out Cloward-Piven strategy. In two years they used browbeating and street tactics to add 6.5 million people onto the welfare rolls. By 1975 they’d added 8.2 million and bankrupted New York City and nearly bankrupted the whole state of New York. The trio did not get GNI, but bragged about their great achievement and Cloward and Piven told their followers to use their strategy to attack housing and voter registration.
B) Shortly after progressive Jimmy Carter’s democrats created the (CRA ’77) Community Reinvestment Act in 1977 to force mortgage companies to make bad home loans to clients who could not be reasonably expected to ever repay their loans, Wiley’s lieutenant Wade Rathke (later founder of the SEIU union whose present leader Andrew Stern has visited the White House more than any other individual) already working on NWRO in Arkansas for Wiley was told to create another community organization there.
C) Rathke created ACORN (initially the “A” in ACORN stood for “Arkansas” only later would it come to mean “Association) that same year. They (ACORN) were somewhat ineffective at first in the housing arena but they did help elect William Clinton to the governorship in 1978 and keep him their for 12 of the next 14 years. In the next 21 years CRA ’77 would be expanded four times (three times by Clinton) and benefit greatly from “mortgage-guarantee regulatory review” ordered by Clinton in 1993, his first year in office. That same year Clinton oversaw the passing of the Motor Voter Act which gave ACORN a twelve-lane highway to voter registration fraud. In the official MVA picture of the signing ceremony, Richard Cloward and Frances Piven stand almost directly behind Clinton as he wields his pen.D) Clinton oversees two CRA expansions in 1995 and the steroid-version expansion of mortgage-guarantee legislation in 1998. As a result: highly risky loans (those written with under 10% down payment) increased dramatically and utterly insane loans (with less than 3% down payment required shot through the roof. Here’s the timeline:
1966 Cloward-Piven strategy is published
1967 NWRO is created with Wiley at its head
1975 NYC goes bankrupt and is bailed out by the federal government. Cloward, Piven and Wiley brag about their great deed and C-P followers are advised that the next emphasis areas must be voter registration and housing
1975 less than 0.24% of all home loans @ less than 3% down 1/404
1977 Jimmy Carter is inaugurated. CRA ’77 is passed. Rathke creates ACORN in Arkansas.
1978-1992 ACORN supports Bill Clinton, keeps him in office for 12 of the next 14 years until he becomes the first ACORN president in 1992. Over the years ACORN voter drives “register” tens of thousands of voters in Arkansas, only trouble? They never deliver a single “preferred party-Republican” registration form to voting authorities.
1985 just above 0.50% of all home loans @ less than 3%
1992-1995 CRA ’77 is expanded three times by congress
1993 Bill Clinton’s regulatory review of CRA ’77 puts ACORN on overdrive now they’ve truly got the law and the president on their side
1994 ACORN lawyer Barack Obama begins work brow-beating and shaking down home lenders so they’ll grant stupid loans
1995 roughly 14% of all loans are ill-advised @ less than 3% down
1998 Clinton passes the steroid version of CRA ‘77
2002 ACORN perfects their ploys and discovers that for little more trouble than getting a $120,000 loan they can put a destitute person in a $400,000 home.
2003 Investment advisor James Stack of Investech.com’s website starts running a chart on the “Housing Industry Bubble” in November, ’03 which he’ll continue running until about April 2008. Stack claims that not only are home prices in a bubble (risky high level) but the housing industry itself, construction and mortgages particularly have risen to 1400% of their 1996 values. On top of this, Stack pinpoints a coming “sub-prime lending crisis” based upon poor people who can’t afford their mortgages being put into very expensive homes.
2005 34% of all home loans are presumably bad business decisions @ less than 3% down; many of them 0% loans granted after ACORN shake-downs to clients without I.D.; without jobs; with horrific credit ratings; with only food stamps to list as "income"; without even a rental history; all sorts of welfare recipients; illegal aliens; and others who have no business with a mortgage loan.
2005 The Bush administration has seen enough, in January, 2005 they offer a bill to erradicate the sub-prime lending crisis and undo much of the CRA expansion, particularly with regard to Freddie Mac and Fannie Mae and to Clinton’s ’98 steroid-version. The bill is soundly defeated.
2007 Finally, in July, 2007, enough conservative and moderate Democrats have understood the crisis and a watered down version of the original January, 2005 Bush initiative is passed . The bill proves to be far too little, far too late and the country falls into financial chaos . . . but the new law does enough that three weeks ago Treasury Secretary Timothy Geithner praised Bush for saving the country from truly serious problems.
Today, when he and his administration and other progressives are not at work playing the “racism card,” Barack Obama delights in saying that Conservatives created the present mess and blaming everything that happened on the Bush administration that preceded him. The truth is sinister but must be acknowledged. The progressive-wing of the Democratic** Party has deliberately undermined the economy and Constitution of this country and must be made accountable. Who best to do the accounting and to banish the progressive-wing from their midst for eternity? The real Dems must do the deed.
Ya’ll live long, strong and ornery,
** A strong and honorable Democratic Party supporting the Constitution is needed.