Obama and ACORN Directly Contributed

To Our 2008 Economic Crisis

© O. R. Adams Jr., 2008


We all know about the voter fraud in which ACORN (Association of Community Organizations for Reform Now) has been involved in for many years. What some may not know is Barack Obama's close connections and work with this radical leftist organization over the years; and how they brought forceful pressure on banks to make the bad "subprime" loans that are the root of our current financial crisis.

Just how close was Obama to ACORN? Michelle Malkin reports that he hid an $800,000 contribution to ACORN out of his campaign funds.[1] We can make an informed assumption that this money was to be used, at least in part, for the voter registration campaign of ACORN that is replete with fraudulent registration of unqualified people as Democrat voters. Obama learned his Chicago style politics well.

In the article on this website, Our 2008 Financial Crisis Was Caused by the Democrats, I detailed Obama's close connections with Fannie Mae and Freddie Mac officials, and that in the short time that he was a Senator he received "contributions" from them totaling $126,349, second only to Christopher Dodd. For the short time that Obama has been a Senator, he probably got more than even Dodd. The facts in this last article give us more insight into why these officials, who were milking these organizations for large sums of money while they were making bad loans, liked Obama so well.

To revue some history: "The seeds of today's financial meltdown lie in the Community Reinvestment Act [CRA] - a law passed in 1977 and made riskier by unwise amendments and regulatory rulings in later decades."[2] Jimmy Carter was President in 1977. Actions taken directly by the Clinton Administration, in 1999, to push for these subprime loans to "minorities and low income people" and the involvement of Fannie Mae and Freddie Mac in it were also explained in the prior article. ACORN and Obama tie directly into this, because they participated in pressuring and actually forcing banks into making unsafe loans in the 1990s.

"Democrats and groups associated with them leaned on banks and even sued to get them to make bad loans under the Community Reinvestment Act." Obama served as an attorney in one of these suits against Citibank.[3]

Of course, Obama and ACORN do not bear all of the blame for the bad mortgages. Their activities were during the Clinton Administration and fully backed by that administration. As explained in the prior article, the big push for the "subprime" mortgages was by that administration. Farther insight is given by a good CNS news article of September 22, 2008, Financial Meltdown: Where Does the Buck Stop? The article explains how the Clinton administration, with Attorney General Janet Reno, by threats of legal action under the CRA, forced banks into making bad loans that they would not otherwise have made, stating:

The Clinton-Reno threat of “vigorous enforcement” pushed banks to make the now infamous loans that many blame for the current meltdown, Richman said. “Banks, in order to not get in trouble with the regulators, had to make loans to people who shouldn’t have been getting mortgage loans.”[4]  

The CRA was also used by the Clinton administration and ACORN in another way. An article in the New York Post (referred to in the next paragraph) states: "Any bank that wants to expand or merge with another has to show that it complied with CRA – and approval can be held up by complaints filed by groups like ACORN."

The New York Post had an extensive article[5] on September 29, 2008 , that details the sordid activities of ACORN and Barack Obama in getting banks to make these unsafe loans that are at the source of our current mortgage and housing value crisis. The following are excerpts from it:

"One key pioneer of ACORN's subprime-loan shakedown racket was Madeline Talbott - an activist with extensive ties to Barack Obama. She was also in on the ground floor of the disastrous turn in Fannie Mae's mortgage policies"

In those years, [Obama] conducted leadership-training seminars for ACORN's up-and-coming organizers. That is, Obama was training the army of ACORN organizers who participated in Madeline Talbott's drive against Chicago's banks.

More than that, Obama was funding them. As he rose to a leadership role at Chicago's Woods Fund, he became the most powerful voice on the foundation's board for supporting ACORN and other community organizers. In 1995, the Woods Fund substantially expanded its funding of community organizers - and Obama chaired the committee that urged and managed the shift.

"[I]ntimidation tactics, public charges of racism and threats to use CRA to block business expansion have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America's financial institutions."[6]

"Sol Stern [A well known and reputable writer] explains that Acorn is the key modern successor of the radical 1960’s 'New Left,' with a '1960’s-bred agenda of anti-capitalism' to match."[7]

In September 2008, James Walsh, a former Federal Prosecutor, wrote an article, "Obama, Voter Fraud & Mortgage Meltdown."[8] This article is all worthwhile reading. It details facts to support the following:

Which community activist/political organization in the United States is the largest, most radical left, and most untrustworthy? The answer is ACORN, which bills itself as the nation’s largest community organization for the rights of low-and moderate-income families. Its hidden agenda, however, is to change the form of the U.S. government from a republic to a socialist oligarchy, using class warfare and the aid of radical liberals within the Democrat Party. This hidden agenda explains why the liberal newsmedia go mute on Obama’s ACORN ties.

 The article begins with the following:

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

It is clear that Barack Hussein Obama has close ties with all of the best known leftist radicals of our time. He also directly contributed to our present economic meltdown. I cannot imagine a knowledgeable person voting for this man as our president.



[3] http://www.mediacircus.com/2008/10/obama-sued-citibank-under-cra-to-force-it-to-make-bad-loans/

[4] http://www.cnsnews.com/public/content/article.aspx?RsrcID=36048

[5] (See New York Post article, footnote 2, above.)

[6] (See New York Post article, footnote 2, above.)  


[8] http://www.newsmax.com/politics/obama_voter_fraud/2008/09/22/133091.html