from Kyle-Anne Shiver (see recommended sites)-
“After several days of rage from conservative activists regarding a provision in the bailout bill that would send some of the profits from the sale of distressed assets the goverment buys into an affordable housing trust fund, congressional negotiators have removed section 105(d) of the bailout proposal, according to aides on both side.”
Before striking this add-on, the $700 billion bailout package included a provision for roughly 20% of funds being set aside for low-income mortages of precisely the type that got us into this mess in the first place. The money would have been given to state and local governments to use at their own discretion, and the chief beneficiary of these type funds in the past has been ACORN. ACORN then plays hardball with lending institutions, threatening them with mass actions, angry protests, etc. if they don’t make it easy for those who can’t pay back to borrow money.
Republicans in Congress had called this provision in the bailout a deal-breaker. Thank the Good Lord someone is watching out for the taxpayers.
HKO comments- It is an absolute outrage that the same partisans who caused this crisis and ignored the warnings would try to perpetuate this crisis by hijacking the bailout to continue making the kind of loans that caused it. The have no shame.