The Obama-Ayers-ACORN-Bailout Connection

Sovereignty International, Inc. Henry Lamb

Barack Obama’s connection to Bill Ayers is important, not because Ayers once bombed U.S. buildings, but because the relationship demonstrates Obama’s personal involvement in events that led directly to the current financial crisis.  The Obama-Ayers-ACORN relationship also supported and advanced other activities that many people might describe as anti-American.

The root cause of the current financial crisis is, unquestionably, the result of Fannie Mae’s and Freddie Mac’s purchase of too many mortgages issued to people who could not afford them.  The default rate among these mortgages is the precise reason why nearly a trillion (with a T) dollars has been taken from taxpayers to bail out the institutions that bought the bad mortgages.

Bill Ayers played a key role in putting Barack Obama in a position to directly contribute to the explosion of bad mortgages issued to people who could not afford them. A little background is necessary, to put the current situation in context.

During the Carter years, the United States became a party to the International Convention on Economic, Social and Cultural Rights (October 5, 1977).   Article 11 (1) of this treaty declares that “everyone” has a right to, among other things, housing. This is the same year that the Carter administration pushed through Congress the Community Reinvestment Act, designed to increase housing for low-income people.  This new law required banks to report the number and value of loans issued to low-income people, and also gave community organizations (such as ACORN) the right to “comment” on proposed bank mergers and expansions.  This gave these organizations leverage against banks that failed to issue enough loans to low-income borrowers.

ACORN (Association of Organizations for Reform Now) in Chicago developed the art of bank intimidation by direct action.  Led by Madeline Talbott, ACORN routinely disrupted bank business by filling bank lobbies with unemployed people protesting “unfair” lending practices. In 1990, Talbott also forced the first hearing under the CRA, claiming the Bell Savings & Loan Association should be denied a request to expand because they failed to meet the CRA lending guidelines for low-income people.  This tactic was so successful that ACORN had only to announce a demonstration at a bank to win generous contributions from financial institutions.

Obama returned to Chicago in the early 1990s, just as Talbott’s bank demonstrations were gathering steam.  Talbott chose young lawyer Obama to represent ACORN in a “motor voter” case.  Obama also represented ACORN in a voter registration drive.  Talbott tapped Obama to train her staff and the ACORN army that participated in the bank demonstrations.  This community organizing experience is what Obama says qualifies him to be president.

It gets worse.

Bill Ayers wrote the proposal that resulted in a $50 million grant from the Annenberg Foundation for a Chicago education project called the “Annenberg Challenge.”  Together with local matching funds, this grant was to improve education in Chicago.  Obama was chosen to run the Annenberg Challenge. Rather than using the money to improve local schools, Obama funneled money to third-party projects such as Bill Ayers’ “Small School Network” which included Ayers’ “Peace School” whose curriculum is centered on U.N. structures and goals and socialist policies. 

Obama and Ayers also serve together on the boards of the Joyce Foundation  and the Woods Foundation, both of which directed significant funding to ACORN, Wright’s church, and to Ayers’ schools.

From 1993 to 1999, the President’s Council on Sustainable Development worked to implement the recommendations of Agenda 21, adopted in Rio de Janeiro in 1992.  Agenda 21’s Article 21.7(6) reaffirms the U.N.’s declared “right to housing.”  The PCSD document, Sustainable America: A New Consensus, sets forth specific policy recommendations in chapter four which requires the federal government to provide “incentives” to expand housing among low-income people.  Clinton’s Secretary of Housing and Urban Development, Henry Cisneros, partnered with ACORN to provide those incentives.

ACORN used a double-barrel tactic to achieve its goal.  First, they launched massive demonstrations against local banks, which defended their failure to make loans to low-income people by claiming that Fannie Mae and Freddie Mac would not honor them because of credit restrictions. And second, by employing sophisticated high-priced lobbyists in Washington to twist the arms of Congressmen to reduce the credit restrictions on Fannie Mae and Freddie Mac.   

The tactic was successful.  In 1995, the Clinton administration announced a massive expansion of funding for low-income people and dramatically reduced credit requirements of Fannie Mae and Freddie Mac, with a goal of insuring that half the total mortgages purchased by these institutions were issued to low-income people.  Henry Cisneros, with ACORN representatives at his side, made the announcement with great fanfare.  These were, in fact, the “incentives” called for by the President’s Council on Sustainable Development, necessary to honor U.S.  treaty obligations to recognize the “right” of housing for everyone.

The ACORN Housing Corporation flourished, as did the executives at Fannie Mae and Freddie Mac whose bonuses were calculated on the volume of low-income mortgages included in their portfolios.  The Clinton appointees to these institutions became multi-millionaires. 

Bill Ayers was far more than “…just a guy in the neighborhood,” as Obama claimed.  It was no accident that Obama launched his political career at a fund-raiser at Bill Ayers’ home.  It was no accident that Obama chose Jim Johnson, former head of Fannie Mae, to head his Vice Presidential search team.  It was no accident that Obama received $126,000 from Fannie Mae and Freddie Mac in just four years.  It was no accident that Obama was a deeply involved in the events that led to the current economic crisis in America. 

Nor is it an accident that Obama claims that the current situation is the “final verdict on eight years of George Bush’s policies.”  He must divert attention away from his personal involvement with the real events that caused the crisis.