Building our economy from the bottom up
As this presidential campaign has worn on we hear more and more that Barack Obama wants to build the economy from the bottom up. Clearly to take tax dollars from the wealthy (earning over $250,000) and give those dollars to the lower income people in our system some who don?‘t even pay federal income taxes. His theory is that these people will create a new market for future businesses in this country.
Maybe we should all look at the recent history of this economic theory and Mr. Obama?’s participation in that theory. In all of the photographs I have seen of Mr. Obama while he was a community organizer in Chicago and during the time he was alleged to be working closely with ACORN he always seems to stand in the back ground.
Now I am no expert on ACORN and I am just beginning to see how they flew in under the radar and just prior to this election they are having a huge impact on the trust and final outcome of this election. They clearly have received money from the Obama campaign and he was involved in their operations. The extent of that involvement will not be known until after the election when it will be too late.
One of the functions of the ACORN operation was to pressure banks and other lenders to loan money to people that had no down payment, no verifiable work record, no record or experience of owning and taking care of a home, and in many cases these loans were made on homes that were in declining neighborhoods thus making any appraisal for the lender suspect. Acorn has been known that they formed a group and it protested in front of and in lending institutions for more loans into these declining neighborhoods. They pointed to the community reinvestment act of 1977 as their basis for protest. I am sure there was resistance initially by the banks and lenders only to be reassured by congress (Barney Frank and Chris Dodd) that Freddie Mac and Fannie Mae would buy these sub-prime loans once they were made. Once these lenders had an outlet and a place to get rid of these bad loans the flood gates opened wide and everyone joined in. By the middle of this decade we saw middle class families buying homes with ARM mortgages, new home builders not escrowing the taxes for the full value of the new home, they accepted a down payment (loop hole) from a charity and all of these costs and high risks were rolled over into the price of the new home. As the word spread more and more people joint in to get their piece of the gravy train coming down the track. Clearly the vast majority of these people had no business buying let alone applying for the loans that in many cases I believe they knew they couldn?’t pay back. However by now the snow ball was rolling down the hill with buyers starting to default in middle of this decade. Seeing the red light at the end of the tunnel the builders past along every house they could sell and then it hit. They were exposed and the lenders started to pull back on the housing throttle but by then we were heading over the cliff that had no tracks.
As this presidential campaign has worn on we hear more and more that Barack Obama wants to build the economy from the bottom up. Clearly to take tax dollars from the wealthy (earning over $250,000) and give those dollars to the lower income people in our system some who don?‘t even pay federal income taxes. His theory is that these people will create a new market for future businesses in this country.
Maybe we should all look at the recent history of this economic theory and Mr. Obama?’s participation in that theory. In all of the photographs I have seen of Mr. Obama while he was a community organizer in Chicago and during the time he was alleged to be working closely with ACORN he always seems to stand in the back ground.
Now I am no expert on ACORN and I am just beginning to see how they flew in under the radar and just prior to this election they are having a huge impact on the trust and final outcome of this election. They clearly have received money from the Obama campaign and he was involved in their operations. The extent of that involvement will not be known until after the election when it will be too late.
One of the functions of the ACORN operation was to pressure banks and other lenders to loan money to people that had no down payment, no verifiable work record, no record or experience of owning and taking care of a home, and in many cases these loans were made on homes that were in declining neighborhoods thus making any appraisal for the lender suspect. Acorn has been known that they formed a group and it protested in front of and in lending institutions for more loans into these declining neighborhoods. They pointed to the community reinvestment act of 1977 as their basis for protest. I am sure there was resistance initially by the banks and lenders only to be reassured by congress (Barney Frank and Chris Dodd) that Freddie Mac and Fannie Mae would buy these sub-prime loans once they were made. Once these lenders had an outlet and a place to get rid of these bad loans the flood gates opened wide and everyone joined in. By the middle of this decade we saw middle class families buying homes with ARM mortgages, new home builders not escrowing the taxes for the full value of the new home, they accepted a down payment (loop hole) from a charity and all of these costs and high risks were rolled over into the price of the new home. As the word spread more and more people joint in to get their piece of the gravy train coming down the track. Clearly the vast majority of these people had no business buying let alone applying for the loans that in many cases I believe they knew they couldn?’t pay back. However by now the snow ball was rolling down the hill with buyers starting to default in middle of this decade. Seeing the red light at the end of the tunnel the builders past along every house they could sell and then it hit. They were exposed and the lenders started to pull back on the housing throttle but by then we were heading over the cliff that had no tracks.
