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by LQQKING from Orlando Florida

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Yeah I know I quit but I just could not fail to share this with you the contrast is enlightening   --LQQKING--

Bush's Greatness

Source: The Weekly Standard

IT'S OBVIOUS not only that George W. Bush has already earned his Great President badge (which might even outrank the Silver Star) but that much of the opposition to Bush has a remarkable and very special quality; one might be tempted to call it "lunacy." But that's too easy. The "special quality" of anti-Bush opposition tells a more significant, stranger story than that.

Bush's greatness is often misunderstood. He is great not because he showed America how to react to 9/11 but because he showed us how to deal with a still bigger event--the end of the Cold War. The collapse of the Soviet Union in 1989 left us facing two related problems, one moral and one practical. Neither President Clinton nor the first Bush found solutions--but it's not surprising that the right answers took time to discover, and an event like 9/11 to bring them into focus.

In moral terms: If you are the biggest boy on the playground and there are no adults around, the playground is your responsibility. It is your duty to prevent outrages--because your moral code demands that outrages be prevented, and (for now) you are the only one who can prevent them.

If you are one of the two biggest boys, and the other one orders you not to protect the weak lest he bash you and everyone else he can grab--then your position is more complicated. Your duty depends on the nature of the outrage that ought to be stopped, and on other circumstances.

This was America's position during the Cold War: Our moral obligation to overthrow tyrants was limited by the Soviet threat of hot war, maybe nuclear war.

But things are different today. We are the one and only biggest boy. We can run from our moral duty but we can't hide. If there is to be justice in the world, we must create it. No one else will act if the biggest boy won't. Some of us turn to the United Nations the way we wish we could turn to our parents. It's not easy to say, "The responsibility is mine and I must wield it." But that's what the United States has to say. No U.N. agency or fairy godmother will bail us out.

Of course our moral duty remains complicated. We must pursue justice, help the suffering, and overthrow tyrants. But there are limits to our power. We must pick our tyrants carefully, keeping in mind not only justice but our practical interests and the worldwide consequences of what we intend. Our duty in this area is like our obligation to show charity. We have no power to help everyone and no right to help no one. In the event, we chose to act in Afghanistan and Iraq to begin with--good choices from many viewpoints.

The end of the Cold War means that our practical duties have changed too, in a limited way. Since the close of World War I in 1918, our main enemy has been the terrorist-totalitarian axis--still true today. Different nations and organizations have occupied this axis of evil, but the role itself has been remarkably stable. Until the end of the Cold War, the Soviet Union was the main terrorist-totalitarian power (except when it was eclipsed by Nazi Germany and Warlord Japan). The Berlin Wall fell in 1989; in 1990, Saddam marched into Kuwait. Radical Arab terrorism and totalitarianism go way back; the Nazis and then the Soviets supported them. When the Soviets fell, Arab tyrants and terrorists were ready for the limelight. Our job was to find new ways to do what we had always done--fight and (ultimately) beat our terrorist and totalitarian enemies.

President Bush had to respond to these post-Cold War realities; 9/11 meant that our pondering period was over. He announced, with deeds and not just words, that we would meet our moral obligations, police the playground, and overthrow tyrants; we would meet our practical obligations and continue to lead the fight against this new version of the terrorist-totalitarian axis.

 

We have often been told that we face, today, a whole new kind of war. Only partly true. For more than half a century we have battled totalitarian regimes (the Soviets, North Vietnam, Cuba . . . ) and the terrorists they sponsored. Today we are battling totalitarian regimes (Baathist Iraq and the Taliban's Afghanistan, Iran, North Korea) and the terrorists they sponsor. What's changed? Since we became modern history's first monopower, our obligations and maneuvering room are both greater. But the basic nature of the struggle is the same.

Lincoln said, "Let us, to the end, dare to do our duty as we understand it." Bush answered: "Okay; let's roll." We accept our obligation to be the world's policeman. If not us, who? If not now, when?

 

THE WAR IN IRAQ is dual-purpose, like most American wars. Take the Civil War. At the beginning, the North fought mainly for pragmatic reasons. No nation can tolerate treason, or allow itself to be ripped to bits or auctioned off piece-wise by malcontents. Midwesterners couldn't allow the Mississippi to fall into foreign hands; they needed their outlet to the sea. And so on. Slavery was overshadowed. But as the war continued, slavery emerged as the issue, and the war's character changed.

The Iraq war started as a fight to knock out a regime that invaded its neighbors, murdered its domestic enemies with poison gas, subsidized terrorism, and flouted the international community. Obviously such a regime was dangerous to American interests. But as the war continued and we confronted Saddam's gruesome tyranny face to face, the moral issue grew more important, as emancipation did in the Civil War. For years the Iraqi people had been screaming, in effect: "Oh, my God. Please help me! Please help me! I'm dying!" How could America have answered, "We don't want to get involved"? We are the biggest kid on the playground. If we won't help, who will?

I have just quoted the death-cries of Kitty Genovese, who died on the streets of New York 40 years ago. And I have quoted the response of an onlooker who didn't feel like helping. Her case still resonates in America's conscience, and tells us more than we want to know about the president's enemies.

The New York Times ran the story in March 1964.

 

For more than half an hour 38 respectable, law-abiding citizens in Queens watched a killer stalk and stab a woman in three separate attacks in Kew Gardens.

 

Twice the sound of their voices and the sudden glow of their bedroom lights interrupted him and frightened him off. Each time he returned, sought her out and stabbed her again. Not one person telephoned the police during the assault; one witness called after the woman was dead.

 

The left wanted America to watch Saddam stab Iraq to death and do nothing. That is the left's concept of moral responsibility in the post-Cold War world.

Miss Genovese screamed: "Oh, my God, he stabbed me! Please help me! Please help me!"

The Iraqi people were dying. The left had no pity. The Bush-haters were opposed to American "arrogance." The New York Times shrugged.

 

It was 3:50 by the time the police received their first call, from a man who was a neighbor of Miss Genovese. In two minutes they were at the scene. . . .

 

The man explained that he had called the police after much deliberation. He had phoned a friend in Nassau County for advice. . . .

"I didn't want to get involved," he sheepishly told the police.

 

Let's not get involved, said the Bush-haters. It's none of our business. Let the U.N. do it.

 

One couple, now willing to talk about that night, said they heard the first screams. The husband looked thoughtfully at the bookstore where the killer first grabbed Miss Genovese.

 

"We went to the window to see what was happening," he said, "but the light from our bedroom made it difficult to see the street." The wife, still apprehensive, added: "I put out the light and we were able to see better."

Asked why they hadn't called the police, she shrugged and replied, "I don't know."

 

We have paid a steep price in Iraq, a thousand dead; but if you choose duty, you must choose to pay. Speaking for America, the president has said: We choose duty. What do we get in return? Nothing. Except the privilege of looking at ourselves in the mirror, and facing history and our children.

 

Opposition to Bush's policy in Iraq goes even further than the Kitty Genovese defense. Its real nature finally came clear when I heard about an anti-Bush harangue by a survivor of Hitler's Germany. He was a young boy when he and his family got out, just in time. "I hate Bush," this man said--or words to that effect--"because America today reminds me of Germany then. Bush is on his way to creating a fascist America." Other Bush-haters have said similar things.

Notice (it is a thing we will have to explain) that this man hates Bush not because of but despite the facts. Has the Republican Congress decreed a U.S. version of the Nuremberg race laws? Has the administration transformed every American news source into a propaganda machine? Demanded that Jews (or anyone) be fired? That Jewish (or any other kind of) shops, businesses, professionals be boycotted? Propaganda posters everywhere? Students thrown out of schools? Secret police grabbing people off the streets? Children urged to inform on parents? All opposition parties banned? Churches harassed? A "Bush Youth" that every "Aryan" boy must join? Storm-troopers holding torchlight parades, singing hate-mongering war songs? Gigantic communal fines levied against Jews (or anyone else)? State-sponsored pogroms? Massive regimentation and rearmament? A führer cult and special schools to train disciples? Brutal suppression of all regime opponents? No? Actually America under Bush resembles Nazi Germany in no way whatsoever, isn't that so? Then why did you lie and say it did?

One hears many similar accusations nowadays. The Bush administration is spending blood for oil, hopes to expand its imperialist reach, intends to dominate and oppress the Iraqi people, is the world's leading threat to peace. Hates Muslims, despises our allies, plans to suppress the Bill of Rights. There is a name for this kind of hatred--the kind that shrugs off reality, loves to mock its targets and treat them as barely human, capable of any outrage, unspeakably stupid and evil. There is a name for the kind of hatred that applies automatically to any member of a designated group--in this case to American conservatives and especially white, religious American conservatives. The name of this hatred is racism.

We can't understand hatred like the German survivor's or Michael Moore's or a million self-righteous left-wingers' unless we understand that their Bush-hatred is racist hatred.

"Race" has traditionally meant any group that seems like a group, with a recognizable group identity--Americans, British, Jews, Japanese were all called "races." The Oxford English Dictionary says that a "race" is (among other things) "a group or class of persons . . . having some common feature or features." Thus "the race of good men" (1580), "a race of idle people" (1611), "a new race of poets" (1875). The newspaper humorist Don Marquis once wrote about "the royal race of hicks." Racist hatred has clearly recognizable characteristics:

* The hater knows all about his target automatically; no research required. Recall how many leftists were shocked when Bob Woodward informed them, in his Bush book, that the president was an alert, hands-on manager. They had known this to be false a priori.

* The hater harbors a stupendous conceit. Not long ago an Ivy League philosophy professor explained the political homogeneity of so many philosophy departments. Pure merit, he said; you have to be smart to be a philosophy professor, and conservatives are dumb, so what can you expect?

* The hater is moved by a terrible, frantic eagerness to set himself apart from "them." In the spring of 2003, an American pop-singer announced to her London audience, "Just so you know, we're ashamed the president of the United States is from Texas."

* The hater just knows that his opponent acts not on principle but out of greed or stupidity. At an anti-Iraq war demonstration in March 2004, the actor Woody Harrelson read a poem. "I recognize your face, I recognize your name. / Your daddy killed for oil, and you did the same." We often hear this "blood for oil" accusation. After the first Gulf War we had Iraqi and Kuwaiti oilfields in our grasp. If our goal was to steal oil, why did we give them back? Are we that stupid?

* The hater has no shame--because he knows (not by reason but automatically) that he is right. Thus a decent and likable retired businessman, rich and with every reason to be grateful to America--the survivor of Nazi Germany I've mentioned--accuses the president of closet fascism.

That's racist hatred.

 

I DON'T SAY that all Bush-haters are racist. By no means. We have a long tradition of super-heated politics in this country. Everyone is entitled to hate the president and do his best to get rid of him.

The racist attacks I have in mind come from the reactionary left--not from the average registered Democrat, in other words, but from the liberal elite.

Reactionaries recoil from new ideas and try to suppress and defeat them. They want things to stay the same. Hence their racist hatred of uppity white conservatives, who have developed the cheek to threaten the left's cultural power. Such institutions as Fox News and the conservative Washington think tanks are hugely disturbing to reactionary liberals. The president faces the same thinking as he tries to set policy for post-Cold War America. Reactionary liberals want everything to stay just the same. All trends must continue just as they have been. (Judges must continue to subvert democracy; Congress must continue to create new entitlements.) We must treat the new totalitarians just the same as we once were forced to treat the Soviets--gingerly. Our goal must be not to liberate their victims, not to defeat and disarm their military machines, but to arrange détente with their dictators--just as we once did. (Détente with Saddam was French and Russian policy until we screwed things up.) Our antiquated pre-cell phone, pre-microchip laws and regulations must stay just the same (kill the Patriot Act!), and we must sit still and wait politely for the next terrorist outrage, just as we always have.

Bush has a simple message for the reactionary left: The times change and we change with them. He is a progressive conservative--and a progressive president in the best sense. And he has established his greatness in record time.

 

David Gelernter, a contributing editor to The Weekly Standard, teaches computer science at Yale.


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Since Fox does not want re-posts there is little for me to do here . I was under the impression that I contributed because of the number of my posts that were featured.

In any event good luck to you all and good bye

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500K illegal immigrants defying deportation orders

Source: The San Francisco Chronicle

By DENISE LAVOIE, Associated Press Writer

Zeituni Onyango came to the United States seeking asylum from her native Kenya but was turned down and ordered to leave the country in 2004.

Four years later, she is still here. And her nephew is about to become president of the United States.

Onyango's family connection to Barack Obama has thrown a spotlight on a phenomenon many Americans might find startling: An estimated half-million immigrants are living in the United States in defiance of deportation orders.

U.S. Immigration and Customs Enforcement has stepped up efforts to catch fugitive aliens, as they are known, and now has about 100 "fugitive operations teams" around the country. In the past year, the teams have made 34,000 arrests, more than double the number two years ago. But there are still 560,000 such immigrants in the U.S.

Fugitive aliens include people who, like Obama's aunt, sought asylum in the United States but were rejected and ordered to leave the country. Others were caught entering or living in this country illegally, and failed to show at their deportation hearings.

Often, illegal immigrants who have been issued deportation notices are given a certain amount of time to get out of the country on their own. They are not forcibly put aboard a plane; these deportations essentially operate on the honor system.

Generally, if these immigrants stay out of trouble — if they don't get pulled over by police or swept up in a workplace raid, for example — they are in little danger of being thrown out of the country.

That galls many immigration reform advocates, who say the practice breeds disrespect for the law and emboldens immigrants to sneak in and stay.

"We are strong believers of enforcement of our immigration laws, and this is a priority area for getting the message across to this country, that if they've been convicted of committing crimes or if they have been ordered deported, that they will be apprehended if they try to hide and continue to stay in the country," said Jack Martin of the Federation for American Immigration Reform.

Government officials say that they do the best they can with the money and manpower available to them, and that they focus on the most serious cases, including those involving illegal immigrants who have committed crimes in this country.

"ICE has taken tremendous steps at closing these cases and apprehending fugitives," spokesman Richard Rocha said. "However, we prioritize our efforts on egregious violators and criminal aliens."

Overall, there are an estimated 11 million illegal immigrants living in the U.S. In the last year, the government arrested and deported a record number of illegal immigrants, nearly 350,000, according to ICE.

Critics of the agency complain of the government's former "catch and release" policy along the border, in which non-Mexicans caught sneaking across were released into this country with a date to appear for an immigration hearing. Officials ended the practice in 2006. Now, these immigrants are held until their hearings.

After paying smugglers $40,000 to get his family to the United States, Juan, his wife and 3-year-old son were caught the moment they crossed into Arizona from Mexico. A judge ordered them deported, released them on bond and gave them three months to leave.

Nine years later, they are still living in the United States. But they avoid going out in public and refuse to drive for fear of getting pulled over by police.

"It's really painful to wonder if, tomorrow, somebody will knock on your door and everything will be over," Juan said.

But he said that is better than going back to their native Bolivia, where their financial prospects are bleak.

"For me, the best chance is to provide education to my children, and that's something that I can do for them here," said Juan, a 38-year-old construction worker in Maryland who supports two older daughters in Bolivia. He asked that only his first name be used to protect his family.

Advocates say many immigrants defy deportation orders because they have lived in the United States for years, married, had children and put down roots in their communities.

"Is it worth going around with that feeling that you might be discovered? Or packing up your entire family now and settling all your obligations in the United States, buying airplane tickets for your family, moving back to a country where you haven't lived for many years, where you are worried about you are going to find a job? There's another whole set of uncertainties," said Maureen O'Sullivan, a Boston immigration lawyer.

It is not clear when Onyango, the 56-year-old half-sister of Obama's late father, first came to the United States. But she moved into a state-subsidized public housing project in Boston in 2003.

After it was reported days before the election that she was in the country illegally, Onyango left Boston and went to Cleveland, where she hired an immigration attorney to fight her deportation order. She is staying with relatives in Cleveland, said her new attorney, Margaret Wong.

The Obama camp has said the candidate did not know about his aunt's status. "If she is violating laws, those laws have to be obeyed," Obama said just before Election Day.

Advocates say the only way to reduce the number of illegal immigrants is to overhaul the nation's immigration laws.

"I ask the new president, I implore the new president to provide legislation that would allow us to become legal, to have papers," Juan said. "I don't mind paying fees, but I want to come out of the shadows."

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 It's Worth Noting How Smoothly We Transfer Power

The president and the president-elect shake hands.

SOURCE: Fox NEWS

BY: Neil Cavuto

Make nice.

The nasty election over. The peaceful transfer of power now being acted out.

For all of capitalism's problems, for all this talk of the death of Western society, of big government coming in and, well, less big government going out, I want you to try and figure this out.

For all that ails us, I cannot think of any system of government anywhere better than us.

We take it for granted in this country that parties come in and out of power in this country.

Without shots fired, or coups launched. Without violent protests in the street, just quiet respect for the will of the people on the street.

If you've spent any time in third world countries, you'll know this is first rate amazing.

That parties, in this case, diametrically opposed can systematically move on.

Our country handles this stuff so routinely, it is worth noting it is unique in how it is conducted so smoothly and peacefully.

Bitterness on some sides, now respectfully, if somewhat grudgingly, joining hands to say we're on the same side.

All Americans, all patriots, all hoping that this system of government might change hands but it doesn't change the constitution, or us.

People change. Our prerogatives change.

Sometimes we usher in an era of top-to-bottom sweeping changes for bigger government, as we did with FDR in 1932.

Sometimes just the opposite, as we did with Ronald Reagan in 1980.

Sometimes our will isn't as clear. One guy wins the popular vote but not the electoral vote.

Four times it has happened. And each time, not a single revolution when it did.

Trust me, we have our problems, and our worries, our foibles, and our blunders.

Plenty of fears.

But time and again, living proof.

We are bigger than the sum of all those fears, and then some.

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Do We Get the Government We Deserve

SOURCE: The American Thinker

by William Tate

Yesterday, Americans by the millions went to the polls and elected a new President.

Today in America, a police officer will risk her life to save someone she's never met. A teacher will stay late to help an at-risk student. A driver will pull off the road to help a stranded motorist.

In America today, a firefighter will charge toward a burning building -- while those inside flee. Soldiers, sailors, airmen and marines will kiss their spouses and kids goodbye, then ship out for foreign lands in order to protect them  

A craftsman will return home to tell his wife that he has lost his job. An entrepreneur will open the doors of her new business for the first time. A doctor will gird herself to tell a patient that he has cancer, and she will formulate a regimen for his treatment.

Today, a tired woman will head to a second job to give her kids a better chance at college. A volunteer will use his lunch hour to deliver food to the elderly. The grand-daughter of a pioneer and the son of an immigrant will wed their lives together.

A bartender will cut off a customer before he has drunk one too many. A child will experience the joy of realizing that letters, so carefully memorized, connect together to form these things called words. A young woman will give birth to a child, and she and her husband will never look at their lives -- or life, itself -- the same way.

Across America, these acts -- these triumphs and tragedies, the heroism and joys, the fear and disappointments of daily life -- will be repeated today by workaday heroes and unsung heroines. Like they were yesterday. And the day before. Just as in Maine the sun this morning will rise once again over the Atlantic and set in Hawaii over the Pacific.

Partisans of one party will celebrate today, while the other side, no doubt, plots a comeback. But for most folks life will go on as before. Because -- despite the bombast and the attack ads and the talking heads and the polls -- most things, the truly important things, rarely have much to do with an election.

The strength of this country is -- and always has been -- its people, the roots that produced such leaders as Washington and Jefferson, Jackson and Lincoln, T.R. and Truman. It is we, the people, who "ordain and establish" our Constitution and government. Not vice-versa. And it is we who make this country work, for better and worse.

It has been said that we get the government we deserve, often as a way to rationalize the leadership we got. But, rather than expecting the public to settle for diminished expectations, perhaps it is time our leaders remembered their obligation to be worthy of the people they serve.

Starting with the man we have just chosen to work in a smallish, not-quite-round office in an ornate building far, far away from most of us.

William Tate is an award-winning journalist and author.

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This is not going to be a long post .

 

Well, Nows His Chance

I simply want to say that this guy had best be a white persons and a red persons and a yellow persons President as well as a black man's . If he isn't he will hold TWO RECORDS The FIRST Black President............................. and the Last.  Mr Obama has his chance to not only have won an Historic Election but to be an Historic President. I recommend he not cater to the leftest nor stifle the right. I must say though his choice for Chief of Staff is discouraging

This Country needs a President to hold us together not tear us apart. If they come out swinging with their leftest agenda I fear for the results for all of us. No one is going to listen to me, but I warn them there are 50% of this country that is Conservative and we will not be abused.

As a veteran of this Country's Naval Service and having risked life and limb to defend her I say we give the man a fair chance......................... That is after all the thing we defend

--LQQKING--

 

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Opportunities of an Obama Presidency

Source: American Thinker

By   Dave Smithee

The cyclical nature of human wisdom is well documented in both secular histories, and the biblical record.

Blessing, Discontent, Rebellion, Suffering, Penitence, Restoration. Wash, rinse, repeat.  As ancient Israel whined to have monarchs rule over them to be like their pagan neighbors, so too are American leftists smitten with the illusory sophistication of the crumbling European economic and social models.  They salivate for the esteem of tyrants, socialists, and every manner of grandiose failure; the more extravagant, the better so long as the mission statement is sufficiently lofty. 

It's said that liberals are like any other people; only more so. In this case, it's their turn to perpetuate the ancient cycle of rejecting what works, turning their backs with disdain on America's incomparable blessings and crying "Give us what they have!"

Well, we've gotten it.

In a receding economy and aided by a political monopoly, President Obama is going to prove unable to resist his fetish for increased taxation and eco-regulatory strangulation. In a dangerous time, his vanity will lead him to grant legitimacy to nations that wish America ill. When an Obama presidency with majorities in the House and Senate ends in economic calamity, emboldened international foes, or both -- as history wearily tells us it must -- then the healing can begin. 

This is a true changing of the guard in more ways than one, as it also signals the end of the Moderate. Trashing his own party only served McCain for so long. The Maverick was devoured by his Media base the moment he became inconvenient, and timorous pseudo-conservatives have jumped ship to ensure they remained on the right side of the DC sophistication line. Classical conservatives would be well served to let them flounder.

Yet I admit my own relief, despite the costs we will bear in the short term, that Obama was the victor.

For the Democrats, it was an act of sublime short-term calculation to trot out Obama.  A man whose easy, telegenic charm was able to narcotize into irrelevance all the facts that would have rendered him unelectable in anyone else's skin. The sewage of slum lords, communist sympathizers and domestic terrorists swirl about his ankles. And yet a flash of smile and a few words in his soothing baritone captured the American imagination and soothed a majority of the electorate.  But now the work is going to start. Results are going to matter, and if there's one fact about Barry that the media was unable to obscure, it's that he is a candidate truly uncluttered by moderation.

He is the proto-Democrat; liberalism's gleaming new flagship. And that's going to be a long-term problem for Democrats in ways they can scarcely now imagine.

Obama's ideological roster ticks off all the requisite good-liberal boxes.  Where he differs critically from say, a Hillary Clinton, is that he has done away with all pretense of social justice or fiscal sanity as rationales for positions that Americans have found historically repellant. He is the candidate that everyone now knows values wealth redistribution not because he can fumble his way through contorted reasoning that it "helps the poor." As he revealed when he endorsed raising capital gains taxes despite no benefit to the treasury; he is a redistributionist in the crudest Machiavellian sense. Admitting that redistributing wealth, even to no fruitful end, is just 'fair', and wishing to secure his power by ensuring he's the one handing out alms.

Unlike other Democrats, we know he openly supports abortion and infanticide as a matter of lifestyle convenience, not unlike the decisions one makes while flipping through an Ikea catalogue. Gone is the talk of medical necessity, or the older tradition of draping abortion in obfuscating language pulled from the left's ‘1001 Things to Call a Civil Right' playbook.  In defending his infanticide vote by insisting that women shouldn't be "punished with a child" he's thrown up his hands with a smirk and declared "That's enough of that 'women's rights' kabuki theater. We all know what this is really about." 

Obama is not just a Democrat, or a liberal. Obama is liberalism. He is liberalism stripped of all of its false fronts of civic mindedness. Shorn of all its bogus declarations of interest in the public good, or lip service to free markets or property rights. He is liberalism as it exists only in the psyche of the petty tyrant, rarely glimpsed emerging in public. Shrieking, demanding as a newborn, nakedly ravenous for power.  Worshipping expedience, debasing of life, and viewing everyone else's wealth as his own, with which he may conduct his vast social experiments on the subdued human landscape. 

But as an ideological flagship surrounded by hysterically unrealistic expectations, if he fails, Obama is going to drag the Democrat ship down to truly crushing depths. And when he does, the redemption of the Democrats will not be swift in coming. With Obama, they have bet the ideological farm, and several surrounding properties too. They have damned the torpedoes and abandoned the strategy of advancing themselves in managed increments. By pushing Obama into the spotlight, they're tipping their entire ideological hand a good twenty years ahead of schedule.
It's difficult to tell how much utterly unchecked leftism America will be willing to endure, or for how long. But one thing for certain is that Obama, in tandem with Pelosi/Reid is the greatest gift the Republicans and conservatives everywhere could have been given.  Over the next four years, there will be no political 'moderation' in Obama to muddy the waters, confuse his identity, or cast doubts about who's to blame for what. 
It's an odd (and maddening) trait of elected conservatives that they come alive almost exclusively in the face of opposition. They define themselves most persuasively when juxtaposed against runaway state largesse, oppressive economic conditions, or the sheer buckling incompetence of Carter-esque liberalism.  Conversely, as they were and would have been with McCain, they're on their weakest footing when squandering intellectual resources and goodwill in the defense of ideologically compromised leadership.  And now they've been blessed with an undiluted, unambiguously radical leftist with which they have four years to contrast themselves and make their case.
Disappointed as some will be, Obama's win is not surprising in the present climate. Sadly, Cavuto had it right on McCain's lack of economic conviction.  With one hand committed to vague free-marketisms and the other dealing out murky condemnations of 'Wall Street greed', he was unable to deliver a coherent counter-punch that addressed the Democrat-driven interventions that birthed the subprime crisis.
In a painful campaign video from Wisconsin, a famously enraged voter declares "I'm mad!" about the "socialists taking over the country". The audience was in a fervor over the gentleman's comments and salivating for partisan red meat.  McCain promptly deflated the crowd by stammering that he would again 'reach across the aisle' and work with everyone to fix the problem. The silent groan of agony that settled on the leadership-starved crowd was palpable. Obama by comparison, was consistent and on message with his serial deceptions and class warfare; but at least he was consistent and on message.

Most painful of all was watching Palin, shackled to McCain's policies like Princess Leia to Jabba the Hutt. Squirming her way through explanations her heart clearly wasn't in, needing to toe the line of McCain's nebulous free-market-populism. It was doubly frustrating to conservatives who knew that Palin understood the root of the problem, and could have eviscerated the Democrats on it handily had she been taken off her chain. Despite the media's crowing about the wickedly energizing Palin being a 'drag on the ticket', the race would have been over long ago without her; she truly represents the future of the party. Like Obama, she is sharp, determined, decisively partisan, with a governing philosophy definable in clear, easily marketed and communicated strokes.

An Obama presidency will certainly mean short-term pain. America is about to learn some very hard lessons, but she will learn them, and conservatives have been handed an unprecedented opportunity to define themselves, regroup, sharpen their ideological knives and come out swinging.  And as a character from Lewis's Narnia observed after breaking a demagogue's oratory hypnosis by forcing himself to step on hot coals, "Pain is very good at dispelling certain kinds of magic."

 

Dave Smithee is the pseudonym of a screenwriter and film artist.

 

 

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Manager of Agriprocessors Plant Arrested for Role in Postville Raid

SOURCE: Numbers USA.com

The former manager of a Postville Agriprocessors plant Sholom Rubashkin was arrested by federal immigration agents on Thursday morning. Rubashkin is the son of the company's owner and faces charges of conspiracy to harbor undocumented immigrants for financial gain, aiding and abetting document fraud and aiding and abetting aggravated identity theft. 

Federal agents raided the plant on May 12, arresting 389 people in what was, at the time, the largest immigration raid in U.S. history. Agents reportedly seized dozens of fraudulent permanent resident alien cards during the plant's raid.

Reports suggest that Rubashkin was aware that it was likely that Immigrations and Customs Enforcement (ICE) would be raiding his plant and he agreed to a $4500 cash loan to those employees without identity documents.  Both parties understood that this money was to be used to acquire false documentation and Rubashkin actively participated in the finding these documents.

Rubashkin is the highest-ranking executive to face arrest since stepped-up immigration raids on meat packing plants began in 2006.

Earlier this week, human resource employee Laura Althouse plead guilty to conspiracy to harbor undocumented immigrants for financial gain and aggravated identity theft. Two other supervisors faced charges and have entered guilty pleas.

In September, the owners and managers of the plant were charged with 9,311 misdemeanors alleging they legally hired minors and let children under 16 handle dangerous equipment.

Iowa authorities have fined Agriprocessors $10 million for wage violations and Sholom Rubashkin faces a maximum of 22 years in federal prison.

The Chicago Tribune and the New York Times have more on this development.

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Ego and Mouth

SOURCE: Real Clear Politics

By Thomas Sowell 

After the big gamble on subprime mortgages that led to the current financial crisis, is there going to be an even bigger gamble, by putting the fate of a nation in the hands of a man whose only qualifications are ego and mouth?

Barack Obama has the kind of cocksure confidence that can only be achieved by not achieving anything else.

Anyone who has actually had to take responsibility for consequences by running any kind of enterprise-- whether economic or academic, or even just managing a sports team-- is likely at some point to be chastened by either the setbacks brought on by his own mistakes or by seeing his successes followed by negative consequences that he never anticipated.

The kind of self-righteous self-confidence that has become Obama's trademark is usually found in sophomores in Ivy League colleges-- very bright and articulate students, utterly untempered by experience in real world.

The signs of Barack Obama's self-centered immaturity are painfully obvious, though ignored by true believers who have poured their hopes into him, and by the media who just want the symbolism and the ideology that Obama represents.

The triumphal tour of world capitals and photo-op meetings with world leaders by someone who, after all, was still merely a candidate, is just one sign of this self-centered immaturity.

"This is our time!" he proclaimed. And "I will change the world." But ultimately this election is not about him, but about the fate of this nation, at a time of both domestic and international peril, with a major financial crisis still unresolved and a nuclear Iran looming on the horizon.

For someone who has actually accomplished nothing to blithely talk about taking away what has been earned by those who have accomplished something, and give it to whomever he chooses in the name of "spreading the wealth," is the kind of casual arrogance that has led to many economic catastrophes in many countries.

The equally casual ease with which Barack Obama has talked about appointing judges on the basis of their empathies with various segments of the population makes a mockery of the very concept of law.

After this man has wrecked the economy and destroyed constitutional law with his judicial appointments, what can he do for an encore? He can cripple the military and gamble America's future on his ability to sit down with enemy nations and talk them out of causing trouble.

Senator Obama's running mate, Senator Joe Biden, has for years shown the same easy-way-out mindset. Senator Biden has for decades opposed strengthening our military forces. In 1991, Biden urged relying on sanctions to get Saddam Hussein's troops out of Kuwait, instead of military force, despite the demonstrated futility of sanctions as a means of undoing an invasion.

People who think Governor Sarah Palin didn't handle some "gotcha" questions well in a couple of interviews show no interest in how she compares to the Democrats' Vice Presidential candidate, Senator Biden.

Joe Biden is much more of the kind of politician the mainstream media like. Not only is he a liberal's liberal, he answers questions far more glibly than Governor Palin-- grossly inaccurately in many cases, but glibly.

Moreover, this is a long-standing pattern with Biden. When he was running for the Democratic Party's presidential nomination back in 1987, someone in the audience asked him what law school he attended and how well he did.

Flashing his special phony smile, Biden said, "I think I have a much higher IQ than you do." He added, "I went to law school on a full academic scholarship" and "ended up in the top half" of the class.

But Biden did not have a full academic scholarship. Newsweek reported: "He went on a half scholarship based on need. He didn't finish in the 'top half' of his class. He was 76th out of 85."

Add to Obama and Biden House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, and you have all the ingredients for a historic meltdown.

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NO BONUSE$ FOR YOU

Source: The New York Post

 By NELL MINOW

 

Secretary Henry Paulson came up with a $700 billion emergency plan to pour government money into the Wall Street firms to save them from collapsing - not to fund a bonus pool for the billionaire boys' clubs of the investment banking firms. It is the economy that is supposed to be bailed out - like the millions of homeowners currently or soon to face foreclosure - not the bankers.

If Paulson does not stop the bailout companies, like Goldman Sachs, Merrill Lynch and Morgan Stanley, from writing big bonus checks to their executives, those payments will make the future viability of the world's best banking system as unstable as a portfolio of sub-prime mortgage derivatives. Stopping the big bonus bonanza would be the right thing to do - and Paulson must do it for five big reasons.

1. It is hypocritical. The Wall Street guys always rhapsodize about the perfection of the free market - until it stops showering them with money. Then people who are already in the top fraction of a percent of the wealthiest people in the world want to be "made whole" with billion-dollar welfare checks.

2. It is unfair. The only justification for multi-million-dollar pay packages is that they reward performance. That means that in a bad year what had gone up must come down.

3. It is infuriating. I've observed many financial scandals, from the savings and loan failures through Enron, WorldCom, and post-Sarbanes-Oxley messes like backdated options. All were recognized as tragic but not pervasive - compartmentalized as the corruption of a limited group of individuals.

But across the country, people see this mess as central to the operation of Wall Street and we are outraged at having to take money that would better be spent on education, the environment, paying down the debt - or lowering taxes - and spend it on making up for the greed and stupidity of a bunch of rich people trying to get richer.

4. It makes it easier for our competitors in global markets. The rest of the world has never really tried to compete with our investment banks, intimidated by their power, expertise, and reach. The current mess has opened up new opportunities for non-US financial institutions.

5. It is asking for trouble from Washington. I'd hate to be a politician who voted for the bailout and has to explain how this money got diverted from customers to bankers. If Wall Street cannot accept some responsibility for creating this problem, Congress and the regulatory agencies will be more than willing to step in to make them.

 

Nell Minow is the editor and co-founder of The Corporate Library, a corporate governance firm.

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Not too much else left to be said

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It's 3 a.m. and the Prime Minister of Israel is Calling

Source: The American Thinker

by William A Jacobson

Joe Biden's warning that America's enemies will test the mettle of Barack Obama is a reminder that this election should be about which presidential candidate is best equipped to handle an international crisis.  For supporters of Israel this question takes on even greater importance in light of Jesse Jackson's warning that in an Obama administration "decades of putting Israel's interests first" would end.

Israel now is surrounded by tens of thousands of missiles, provided by Iran to Syria, Hezbollah and Hamas.  Syria is known to have the largest chemical weapons stockpile in the Middle East, and both Syria and Iran are known to be developing nuclear capabilities.  Among the likely scenarios for the next crisis is a massive surprise attack on Israel, possibly involving unconventional weapons.  In choosing a President, supporters of Israel need to ask themselves who they most trust to answer the phone at the White House in the middle of the night when the Prime Minister of Israel calls. 

To understand Israel's vulnerability, and the vital role the President of the United States plays in securing Israel's existence, one need only look at the 1973 Yom Kippur War.  On October 6, 1973, I was 14 years old.  I remember waking that morning and turning on my clock radio to hear of a crisis that had developed in the Middle East overnight.  On that Yom Kippur, the Jewish Day of Atonement, the armies of Egypt and Syria had launched a surprise attack on Israel, and Israel's survival was in doubt. 


Within the first days of the Yom Kippur War, Egyptian troops broke through Israeli lines in the Sinai desert, while Syrian tanks poured into the Golan Heights.  Only the incredible bravery of the Israeli troops on duty that holiday prevented a catastrophe.  On the Golan Heights, a small contingent of Israeli tank commanders slowed down hundreds of Syrian tanks at enormous personal sacrifice, buying enough time for Israel to mobilize its reserves.  This heroic battle is recounted first hand in Avigdor Kahalani's The Heights of Courage.  In the Sinai, brash tactics of Ariel Sharon and other Israeli commanders prevented Egyptian tanks from advancing towards Israel.

But Israeli victory owed its success to more than bravery.  On October 12, 1973, President Nixon ordered a massive military re-supply airlift to Israel.  President Nixon made this decision over the objections of the foreign policy establishment, which wanted a more "balanced" approach.  Israel owed its survival to a Republican President who was not afraid to make a hard, and in some quarters unpopular, decision in a time of crisis.

There is only one person in the world who can destroy Israel.  That person is not the leader of Syria or Iran, or the head of some terrorist group.  The only person who can destroy Israel is the President of the United States, whose decisions in times of crisis affect Israel's survival.  If Richard Nixon has not taken the bold decision to resupply Israel, Israel would not be here today. 

"9/11" was America's Yom Kippur War, the day on which Americans understood that the appearance of peace may be an illusion.  Who, on 9/10, could have imagined that 24 hours later the World Trade Center Towers would crumble, and the Pentagon would burn?  The attack on September 11, 2001 showed that what happened to Israel in 1973 could happen here. 

The United States did not have to be vulnerable to attack in 2001, any more than Israel needed to be vulnerable in 1973.  In each instance, politicians failed to recognize that the appearance of safety is not enough, and that the enemies of the United States and Israel plot attacks even during peacetime. 

The success of the 1967 "6-day War" had lulled Israelis into complacency, leading Israel not to launch a preemptive attack in 1973 despite numerous warning signs.  Similarly, during the 1990s the United States was lulled into complacency by the end of the Cold War.  Many Americans, particularly on the political left, thought human nature had changed and that if we were "nice" to those who hate us they would be "nice" to us.  The first attack on the World Trade Center, the bombings of our embassies in Africa, and the attack on the USS Cole, met with tepid response from the Clinton administration.  While government leaders ignored these warning signs, the enemies of the United States plotted even greater attacks.

The mainstream media's obsession with electing Obama has pushed history aside.  But the Yom Kippur War and the 9/11 attacks hold important implications for the current election.  History shows that being nice to our enemies does not mean they will be nice to us.  Yet the Obama's foreign policy is built on this false premise.

Voting also is a matter of trust.  Voters are choosing the person they most trust to protect the United States and its allies.  It is not surprising that public support for Israel among the American public has increased since 9/11.  Most Americans now recognize that Israel is the proverbial canary in the coal mine, that Israel and the United States share the same fate and the same enemies.  But this support for Israel is not universal.  The last bastion of anti-Israel fervor in this country is occupied by a toxic mix of radical leftists and Islamists, and anti-Israel academics, who hold sway over a portion of Obama's base.  William Ayers, Jeremiah Wright, Rashid Khalidi and Louis Farrakhan are just some of the personalities upon which Obama cut his political teeth.

Questions regarding Obama's ability to handle an international crisis are not new.  Hillary Clinton's famous "3 a.m." video touched an emotional nerve which voters should not forget as they cast their votes.  "It's 3 a.m. and your children are safe and asleep.  But there's a phone in the White House and its ringing.  Something's happening in the world...."  These words brought home the dilemma facing our country and our allies.  While Americans can see our children sleeping safely, our children may not be safe.  We cannot see the enemies of our children who are awake and plotting against us. 

It appears that many people have forgotten what it felt like on October 6, 1973, and September 11, 2001.  Forgetting history, and focusing solely on the present economic turmoil, is risky to our nation's security.  Democracies must remain vigilant.  Letting a nation's guard down even for a holiday can have disastrous consequences.

The American people do not know what the crisis will be when that phone rings in the White House in the middle of the night.  We do know, however, that the person who answers the phone will have to make a decision, and fast.  No time to see which way the political wind is blowing.  No chance to avoid taking a position, or voting "present."  What stands between Americans and our enemies is the willingness of our leaders to make the hard decisions necessary to protect us and our allies, sometimes in the middle of the night.

While voters have no control over which crisis arises, we do have control over who answers the phone.  For supporters of Israel who remember October 6, 1973, the choice of which person will answer the White House phone is critical because Israel's very survival may be at stake.   

Supporters of Israel are correct to be concerned with the prospect of an Obama presidency.  Which Obama will pick up the phone in the middle of the night?  Will it be the Obama who says all the right things about Israel's safety, or will it be the pre-campaign Obama who was comfortable being arount the anti-Israeli elements in our society when it served his political interests?  Will it be the Obama who pledges never to put Israel's security in jeopardy, or will it be the Obama who surrounds himself with foreign policy advisors who argue for more "balance" in the Middle East policy of the United States?  In choosing Obama, will supporters of Israel be doing the equivalent of picking Door No. 2 on the game show Let's Make a Deal, where we don't know if we made the right choice until it's too late?

A President who hesitates in making a decision, or who worries about "balance" and popularity among the far left, endangers Israel's survival.  When the phone rings at 3 a.m. in the White House, and the Prime Minister of Israel is calling, who do you want answering the phone?

William A. Jacobson is Associate Clinical Professor of Law at Cornell Law School in Ithaca, NY, and author of the Legal Insurrection Blog.  The views expressed here are his own, and not on behalf of the university.


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This is a monster post as far as lenth goes, but if you'd really like to know what your talking about here's where you can learn in one place.

Why the Mortgage Crisis Happened

 Source: American Thinker

by M.Jay Wells

Obama's economic narrative of the mortgage crisis ignores the facts. He has put free-market capitalism at the root of the current mortgage industry debacle, denying the real history of government interference in that market.

On September 15, with banking giant Lehman Brothers filing for bankruptcy protection, Obama was given the opening to begin weaving his anti-capitalist storyline. And that he did. Artfully blurring the mortgage industry crisis with generalized tax policy, Obama declared,


"I certainly don't fault Senator McCain for these problems, but I do fault the economic philosophy he subscribes to. It's a philosophy we've had for the last eight years, one that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else."
The words were carefully chosen.  That day in Colorado marked his return to the teleprompter and a strictly refocused campaign message intent on surreptitiously fusing the mortgage industry woes and free-market capitalism in general. Confident the American people are primed for his socialist brand of "change," Obama maintained his anti-capitalist theme, "What we have seen in the last few days is nothing less than the final verdict on an economic philosophy that has completely failed." According to Obama, capitalism has been "rendered . . . a colossal failure."
His chat with a Toledo, Ohio, plumber showcases his socialist, redistributionist ideology:
"It's not that I want to punish your success. I just want to make sure that everybody who is behind you, that they've got a chance for success too. . . . I think when you spread the wealth around, it's good for everybody."
He had already said as much at an April debate where he said his plan was to "look at raising the capital gains tax for purposes of fairness" (after having just admitted that raising the tax would reduce revenues!). For Obama, increased federal revenue be damned, tax increases are nonetheless necessary for redistributionist "fairness."
Contrary to the Obama narrative, however, it is not free-market capitalism at the root of the current mortgage industry crisis, but rather the very socialism Obama hawks. The historical record makes this fact unmistakably clear.

The Growing Government Hand

1933-1938


President Franklin D. Roosevelt initiated a series of "New Deal" reform programs designed to affect the mortgage market and homeownership. Fannie Mae, the Federal National Mortgage Association, was established to facilitate liquidity among lending institutions.
1968
As part of President Johnson's Great Society reform plan, much of Fannie Mae became a private owned yet government chartered company, a government sponsored enterprise (GSE) providing authority to issue mortgage-backed securities (MBS). Fannie Mae buys home mortgages in order to preserve liquidity in the secondary mortgage market. Though private, it remained backed by the Federal government.
1970
President Nixon chartered Freddie Mac, the Federal Home Loan Mortgage Corporation, as a GSE to compete with Fannie Mae. Designed to help grow the secondary mortgage market, Freddie Mac purchases mortgages from lending institutions to either be securitized as MBS and sold in the secondary market or held by Freddie Mac. At this time the secondary market for conventional mortgages was small.
1977
Sen. Proxmire (D-Wisconsin) introduced a "creeping socialism" community reinvestment Senate bill. Opponents argued the bill would allocate credit without regard for merits of loan applications, thereby threatening depository institutions. Proponents countered that it was only to ensure that lenders did not ignore good borrowing prospects in their communities. The bill's sponsor stressed it would neither force high-risk lending nor substitute the views of regulators or those of banks.
President Carter, pressed by grassroots organizations -- though opposed by the banking industry, signed into law the Community Reinvestment Act (CRA). In the years following the Act has undergone several revisions.
To boost community development laws, CRA was a provision designed to stem bank "redlining," the practice of drawing a red line around low-income communities and denying lending in these areas. The original intent of CRA was to encourage banks to foster homeownership opportunities in these underserved communities in which the lending institutions are chartered.
According to Section 801 of title VIII, "regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs [i.e., credit and deposit services] of the communities in which they are chartered to do business." Accordingly, "regulated financial institutions have continuing and affirmative obligation" to meet these needs. Moreover, the title required each "appropriate Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions."
1980s
With CRA came increased oversight of lending institutions to ensure they were giving credit to low- and moderate-income communities. Regulators expressed that CRA was not designed to compel credit allocation, nor did it require risky lending practices. Moreover, ECOA (Equal Credit Opportunity Act) and FHA, not CRA, were in place to address discrimination in lending. But community organization groups like the radical ACORN began efforts to reshape CRA into government-imposition, in accord with what "affirmative obligation" might suggest. They began pressing the semantic open door and stretching the "discrimination" provision to complain about enforcement of the regulations as lending institutions resisted bad lending practices in poor minority communities.
August 1989
To deal with the savings & loan fallout of the 1980s, Congress enacted the Financial Institutions Reform Recovery and Enforcement Act. In a move with ominous portent, FIRREA mandated public release of lender evaluations and performance ratings, resulting in added pressure on the banking industry. Such public oversight enabled bullying abuses of community organization groups like ACORN to further influence bank lending practices.
1990s
With the mechanisms in place, the community organizing groups began developing directed strategies to exert more and more pressure on the lending industry in the cloak of complicity with CRA. Community organizer Barack Obama worked closely with ACORN activists. Employing the radical Alinsky intimidation tactics Obama had learned and was teaching -- "direct action" -- activists crowded bank lobbies, blocked drive-up teller lanes and demonstrated at the homes of bankers to browbeat risky lending in poor and minority communities. Those who resisted were accused of racism to the media and government officials.
The agitators could now stall or hijack bank mergers by filing complaints of non-compliance against the institutions. Lawsuits alleging redlining and racism began flooding the court system. With the prospect of expansions and mergers threatened, banks settled cases and, significantly, increasingly made loans they would not have normally made. The net effect, as ACORN litigation increased, was that credit standards lowered.
Initially the GSEs resisted purchasing these risky mortgages but eventually the Clinton Administration instructed them to substantially increase the percentage of these mortgages in their portfolios. The government-backed Fannie Mae and Freddie Mac of the Clinton reforms became "a feeding trough," in the phrase of Peter Ferrara.
The poor communities and their exploitive leaders benefited from the capitalization with a surge of homeownership, at least on the surface. Wall Street benefited from increased sales of Fannie Mae and Freddie Mac and guaranteed mortgage-backed securities, as the housing market benefited from new capital channeled from Fannie and Freddie. And the GSE heads profited, with political support in Washington in the form of campaign contributions.
In the period 1989-2008, topping the list of recipients of contributions from Fannie Mae and Freddie Mac is the chairman of the Senate Banking Committee, Sen. Dodd (D-Connecticut), who received $165,400. Second on the list is Sen. Obama (D-Illinois), receiving $126,349 with only three years in the Senate. Rep. Frank (D-Massachusetts), received $42,350.
February 1990
Madeline Talbott, a well-known radical ACORN leader and banking industry agitator, challenged the merger of a Chicago thrift, Bell Federal Savings and Loan Association, who responded that they were being bullied into irresponsible "affirmative-action lending policy."
1991
ACORN interfered with a House Banking Committee meeting for two days protesting a move to bring CRA reform.
1992
Enforcement of CRA was "sporadic," as the Washington Times notes, until a Federal Reserve Bank of Boston study asserted that there were "substantially higher denial rates for black and Hispanic applicants than for white applicants." Co-author Lynn Browne was approached by co-author Alicia Munnell to do the study because "community activists were complaining that mortgage loans were not being made in minority communities."
According to the Times, however, "the study had mishandled statistics on minority default rates. When the errors were accounted for, the same study showed no evidence that nonwhite mortgage applicants were being discriminated against."

Frank Quaratiello, writing in the Boston Herald, cites Stan Liebowitz, "My guess is that they were interested in finding a particular result." Said Liebowitz, "Richard Syron was head of the Boston Fed at the time. He went on to be the head of Freddie Mac. They were looking for mortgage discrimination and they found it."

According to Quaratiello, Syron became Freddie Mac CEO and chairman in 2003 and "faced increasing pressure to buy up more and more risky mortgages, some of which the Boston Fed's guide had, in effect, served to legitimize." Regarding Syron's total compensation in 2007 of $18.3 million, Liebowitz reportedly quipped, "Nice reward for presiding over unprofessional research behavior, bankrupting Freddie Mac and crippling our financial system, all in the name of politically correct lending."
September 1992
The Chicago Tribune described the ACORN agenda as "affirmative action lending." And, writes  Kurtz, "ACORN was issuing fact sheets bragging about relaxations of credit standards that it had won on behalf of minorities."
October 1992
Congress, enacting the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, allowed legislation to "amend and extend certain laws relating to housing and community development." The Act created the Office of Federal Housing Enterprise Oversight (OFHEO) within HUD to "ensure that Fannie Mae and Freddie Mac are adequately capitalized and operating safely." It also "established HUD-imposed housing goals for financing of affordable housing and housing in central cities and other rural and underserved areas."
Rep. Jim Leach (R-Iowa) warned about the impending danger non-regulated GSEs posed. As the Washington Post reports, his concern was that Congress was "hamstringing" the regulator. Complaint was that OFHEO was a "weak regulator." Leach worried that Fannie Mae and Freddie Mac were changing "from being agencies of the public at large to money machines for the stockholding few."
Rep. Barney Frank (D-Massachusetts) countered, as the Post reports, "the companies served a public purpose. They were in the business of lowering the price of mortgage loans."
September 1993
The Chicago Sun-Times reports an initiative led by ACORN's Talbott with five area lenders "participating in a $55 million national pilot program with affordable-housing group ACORN to make mortgages for low- and moderate-income people with troubled credit histories." Kurtz notes that the initiative included two of her former targets, Bell Federal Savings and Avondale Federal Savings, who had apparently capitulated under pressure.
July 1994
Represented by Obama and others, Plaintiffs filed a class action lawsuit alleging that Citibank had "intentionally discriminated against the Plaintiffs on the basis of race with respect to a credit transaction," calling their action "racial discrimination and discriminatory redlining practices."
November 1994
President Clinton addresses homeownership: "I think we all agree that more Americans should own their own homes, for reasons that are economic and tangible and reasons that are emotional and intangible but go to the heart of what it means to harbor, to nourish, to expand the American dream. . . . I am determined to see that you have the opportunity and together we can make that opportunity for the young families of our country. I am committed to a new and unprecedented partnership between industry leaders and community leaders and Government to recommit our Nation to the idea of homeownership and to create more homeowners than ever before."
June 1995
Republicans had won control of Congress and planned CRA reforms. The Clinton Administration, however, allied with Rep. Frank, Sen. Kennedy (D-Massachusetts) and Rep. Waters (D-California), did an end-around by directing HUD Secretary Andrew Cuomo to inject GSEs into the subprime mortgage market.
As Kurtz notes,"ACORN had come to Congress not only to protect the CRA from GOP reforms but also to expand the reach of quota-based lending to Fannie, Freddie and beyond." What resulted was the broadening of the "acceptability of risky subprime loans throughout the financial system, thus precipitating our current crisis."
The administration announced the bold new homeownership strategy which included monumental loosening of credit standards and imposition of subprime lending quotas. HUD reported that President Clinton had committed "to increasing the homeownership rate to 67.5 percent by the year 2000." The plan was "to reduce the financial, information, and systemic barriers to homeownership" which was "amplified by local partnerships at work in over 100 cities."
Kurtz concludes, "Urged on by ACORN, congressional Democrats and the Clinton administration helped push tolerance for high-risk loans through every sector of the banking system -- far beyond the sort of banks originally subject to the CRA. So it was the efforts of ACORN and its Democratic allies that first spread the subprime virus from the CRA to Fannie and Freddie and thence to the entire financial system. Soon, Democratic politicians and regulators actually began to take pride in lowered credit standards as a sign of ‘fairness' -- and the contagion spread."
Attorney General Janet Reno, with a number of bank lending discrimination settlements already, sternly announces, "We will tackle lending discrimination wherever it appears." With the new policy in full force, "No loan is exempt; no bank is immune." "For those who thumb their nose at us, I promise vigorous enforcement," reiterated Reno.
1997
HUD Secretary Cuomo said "GSE presence in the subprime market could be of significant benefit to lower-income families, minorities, and families living in underserved areas . . ."
1998
By falsifying signatures on Fannie Mae accounting transactions, $200 million in expenses was shifted from 1998 to later periods, thereby triggering $27.1 million in bonuses for top executives. James A. Johnson received $1.932 million; Franklin D. Raines received $1.11 million; Lawrence M. Small received $1.108 million; Jamie S. Gorelick received $779,625; Timothy Howard received $493,750; Robert J. Levin received $493,750.
April 1998
HUD announced a $2.1 billion settlement with AccuBanc Mortgage Corp. for alleged discrimination against minority loan applicants. The funds would provide poor families with down payments and low interest mortgages. Announcing the Accubank settlement, Secretary Cuomo said, "discrimination isn't always that obvious. Sometimes more subtle but in many ways more insidious, an institutionalized discrimination that's hidden behind a smiling face."
Before the camera, Cuomo admitted the mandate amounted to "affirmative action" lending that would result in a "higher default rate." The institution would "take a greater risk on these mortgages, yes; to give families mortgages who they would not have given otherwise, yes; they would not have qualified but for this affirmative action on the part of the bank, yes. It is by income, and is it also by minorities? Yes. . . . With the 2.1 billion, lending that amount in mortgages which will be a higher risk, and I'm sure there will be a higher default rate on those mortgages than on the rest of the portfolio."
May 1999
The LA Times reports that African Americans homeownership is increasing three times as fast as that of whites, with Latino homeowners is growing five times as fast, attributing the growth to breathing "the first real life into enforcement of the Community Reinvestment Act." This breath of "life" mandated that Fannie Mae and Freddie Mac buy mortgages with deviant down-payments and debt-to-income ratios which allowed lenders to approve mortgages for lower-income families that would have been denied otherwise.
By now all pretense had disappeared, lending practices were based upon concerns of discrimination in the banking system regardless the consequences. The administration threatened to veto a bill passed by the Senate which had "shortsightedly voted to retrench" CRA, as the advocative Times put it.
Under pressure, Fannie Mae was resisting increased targeting, arguing that the result would be more loan defaults. Barry Zigas, heading Fannie Mae's low-income efforts, argued, "There is obviously a limit beyond which [we] can't push [the banks] to produce," the Times reported.
Fall of 1999
Treasury Secretary Lawrence Summers warned, "Debates about systemic risk should also now include government-sponsored enterprises, which are large and growing rapidly."
September 1999
With pressure from the Clinton Administration, Fannie Mae eased credit requirements on loans it would purchase from lenders, making it easier for banks to lend to borrowers unqualified for conventional loans. Raines explained that "there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market," reported the New York Times.
With this action, Fannie Mae put itself at substantial risk in the event of an economic downturn. "From the perspective of many people, including me, this is another thrift industry growing up around us," warned Peter Wallison. "If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." The danger was known.
September 1999
A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65-$75,000 have on average worse credit records than whites making under $25,000, showing that the difficulty in qualifying was not because of race but because of bad credit records. The Federal Reserve Bank of Dallas accordingly entitled a paper "Red Lining or Red Herring?"
2000
The National Community Reinvestment Coalition instructed on how to exploit the new CRA regulations, "Timely comments can have a strong influence on a bank's CRA rating." NCRC asserted, "To avoid the possibility of a denied or delayed application, lending institutions have an incentive to make formal agreements with community organizations." That is, the mere threat to intervene in the CRA review process had equipped the ACORN groups for the massive shakedown.
Moreover, ACORN had been given a compelling incentive, as CRA allowed the organizations to collect a fee from the banks for their services in marketing the loans. The Senate Banking Committee had estimated that, as a result of CRA, $9.5 billion had gone to pay for services and salaries of the organizers.
Winter 2000
City Journal warned that the Clinton administration had turned CRA into "a vast extortion scheme against the nation's banks," committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers.
March 2000
Rep. Richard Baker (R-Louisiana) proposed a bill to reform Fannie and Freddie's oversight in a House Subcommittee on Capital Markets.
Rep. Frank (D-Massachusetts) dismissed the idea, saying concerns about the two were "overblown" and that there was "no federal liability there whatsoever."
Treasury Undersecretary Gary Gensler testified in favor of GSE regulation. He argued that the bill would promote private market discipline, increase transparency and preserve market competition, reducing the potential for subsidized competitors to distort financial markets.
Fannie Mae spokesmen responded by calling the testimony "inept," "irresponsible," and "unprofessional."
Wallison of the American Enterprise Institute testified to the subcommittee that the bill was "a milestone in Congressional efforts to gain control of the Government Sponsored Enterprises." He added that the "political