Editors Note; This two part article first appeared in the Richmond Patriots blog found at http://richmondpatriots.blogspot.com/. Laura Alcorn has thorough researched the Cloward-Piven strategy as used by Barack Hussein Obama as he carries out his plan to “fundamentaly change” our country. You can find Part I here.
Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed “the most flexible underwriting criteria permitted.” That lender’s $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003. The lender they were speaking of was Countrywide, which specialized in subprime lending and had a working relationship with with ACORN.
Investor’s Business Daily added: The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical “housing rights” groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public- interest lawyer in Chicago by the name of Barack Obama.
Since these loans were to be underwritten by the government sponsored Fannie Mae and Freddie Mac, the implicit government guarantee of those loans absolved lenders, mortgage bundlers and investors of any concern over the obvious risk.
As Bloomberg reported “It is a classic case of socializing the risk while privatizing the profit.”
And if you think Washington policy makers cared about ACORN’s negative influence, think again. Before this whole mess came down, a Democrat-sponsored bill on the table would have created an “Affordable Housing Trust Fund,” granting ACORN access to approximately $500 million in Fannie Mae and Freddie Mac revenues with little or no oversight.
Even now, unbelievably — on the brink of national disaster — Democrats have insisted ACORN benefit from bailout negotiations! Senator Lindsay Graham reported (9/25/08) in an interview with Greta Van Susteren of On the Record that Democrats want 20% of the bailout money to go to ACORN!
This entire fiasco represents perhaps the pinnacle of ACORN’s efforts to advance the Cloward-Piven Strategy and is a stark demonstration of the power they wield in Washington.
Most people are unaware that Barack Obama received his training in “community organizing” from Saul Alinsky’s Industrial Areas Foundation. But he did. In and of itself that marks his heritage and training as that of a radical activist.
Obama objects to being associated with SDS bomber Bill Ayers, claiming he is being smeared with “guilt by association.” But they worked together at the Woods Fund. The Wall Street Journal added substantially to our knowledge by describing in great detail Obama’s work over five years with SDS bomber Bill Ayers on the board of a non-profit, the Chicago Annenberg Challenge, to push a radical agenda on public school children. As Stanley Kurtz states:
“…the issue here isn’t guilt by association; it’s guilt by participation. As CAC chairman, Mr. Obama was lending moral and financial support to Mr. Ayers and his radical circle. That is a story even if Mr. Ayers had never planted a single bomb 40 years ago.”
Also included in the mix is Theresa Heinz Kerry’s favorite charity, the Tides Foundation. A partial list of Tides grants tells you all you need to know: ACLU, ACORN, Center for American Progress, Center for Constitutional Rights (a communist front,) CAIR, Earth Justice, Institute for Policy Studies (KGB spy nest), National Lawyers Guild (oldest communist front in U.S.), People for the Ethical Treatment of Animals (PETA), and practically every other radical group there is. ACORN’s Wade Rathke runs a Tides subsidiary, the Tides Center.
We have heard about Bill Ayers, but we hear little about fellow SDS member Carl Davidson. According to Discover the Networks, Davidson was an early supporter of Barack Obama and a prominent member of Chicago’s New Party , a synthesis of CPUSA members, Socialists, ACORN veterans and other radicals. Obama sought and received the New Party’s endorsement, and they assisted with his campaign. The New Party also developed a strong relationship with ACORN. As an article on the New Party observes: “Barack Obama knew what he was getting into and remains an ideal New Party candidate.”
The reason for George Soros’ fervent support of Obama, comes from the President of his Open Society Institute is Aryeh Neier, founder of the radical Students for a Democratic Society (SDS). As mentioned above, three other former SDS members had extensive contact with Obama: Bill Ayers, Carl Davidson and Wade Rathke. Surely Aryeh Neier would have heard from his former colleagues of the promising new politician. More to the point, Neier is firmly committed to supporting the hugely successful radical organization, ACORN, and would be certain back their favored candidate, Barack Obama.
Obama has spent a large portion of his professional life working for ACORN or its subsidiaries, representing ACORN as a lawyer on some of its most critical issues, and training ACORN leaders.
This is Obama’s own words: I’ve been fighting alongside ACORN on issues you care about my entire career. Even before I was an elected official, when I ran Project Vote voter registration drive in Illinois, ACORN was smack dab in the middle of it, and we appreciate your work. – Barack Obama, Speech to ACORN, November 2007 (Courtesy Newsmax.)
In another article on Obama’s ACORN connections, Newsmax asks a nagging question:
It would be telling to know if Obama, during his years at Columbia, had occasion to meet Cloward and study the Cloward-Piven Strategy.
Is it possible ACORN would train Obama to take leadership positions within ACORN without telling him what he was training for? Is it possible ACORN would put Obama in leadership positions without clueing him into what his purpose was?? Is it possible that this most radical of organizations would put someone in charge of training its trainers, without him knowing what it was he was training them for?
As a community activist for ACORN; as a leadership trainer for ACORN; as a lead organizer for ACORN’S Project Vote: as an attorney representing ACORN’s successful efforts to impose Motor Voter regulations in Illinois; as ACORN’s representative in lobbying for the expansion of high risk housing loans through Fannie Mae and Freddie Mac that led to the current crisis; as a recipient of their assistance in his political campaigns — both with money and campaign workers; it is doubtful that he was unaware of ACORN’s true goals. He could not be unaware of the Cloward-Piven Strategy.
In his few years as a U.S. senator, Obama has received campaign contributions of $126,349, from Fannie and Freddie, second only to the $165,400 received by Senator Chris Dodd, who has been getting donations from them since 1988. What makes Obama so special?
His closest advisers are a dirty laundry list of individuals at the heart of the financial crisis: former Fannie Mae CEO Jim Johnson; Former Fannie Mae CEO and former Clinton Budget Director Frank Raines and billionaire failed Superior Bank of Chicago Board Chair Penny Pritzker.
Johnson had to step down as adviser on Obama’s V.P. search after this gem came out:
An Office of Federal Housing Enterprise Oversight (OFHEO) report from September 2004 found that, during Johnson’s tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998. A 2006 OFHEO report found that Fannie Mae had substantially under-reported Johnson’s compensation. Originally reported as $6-7 million, Johnson actually received approximately $21 million.
Obama denies ties to Raines but the Washington Post calls him a member of “Obama’s political circle.” Raines and Johnson were fined $3 million by the Office of Federal Housing Oversight for their manipulation of Fannie books. The fine is small change however, compared to the $50 million Raines was able to obtain in improper bonuses as a result of juggling the books.
Most significantly, Penny Pritzker, the current Finance Chairperson of Obama’s presidential campaign helped develop the complicated investment bundling of subprime securities at the heart of the meltdown. She did so in her position as shareholder and board chair of Superior Bank. The Bank failed in 2001, one of the largest in recent history, wiping out $50 million in uninsured life savings of approximately 1,400 customers. She was named in a RICO class action law suit but doesn’t seem to have come out of it too badly.
As a young attorney in the 1990s, Barack Obama represented ACORN in Washington in their successful efforts to expand Community Reinvestment Act (CRA) authority. In addition to making it easier for ACORN groups to force banks into making risky loans, this also paved the way for banks like Superior to package mortgages as investments, and for the Government Sponsored Enterprises Fannie Mae and Freddie Mac to underwrite them. These changes created the conditions that ultimately lead to the current financial crisis.
Barack Obama, the Cloward-Piven candidate, has been a radical activist for most of his political career. That activism has been in support of organizations and initiatives that at their heart seek to tear the pillars of this nation asunder in order to replace them with their socialist vision. Their influence has spread so far and so wide that despite their blatant culpability in the current financial crisis, they are able to manipulate Capital Hill politicians to cut them into $140 billion of the bailout.