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Smear: ACORN Helped Cause The Financial Crisis

September 17, 2009 9:47 am ET

By promoting the Community Reinvestment Act, ACORN helped cause the financial crisis.

Smear: ACORN contributed to the financial crisis by promoting the Community Reinvestment Act (CRA)

The Wall Street Journal:

What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such as Acorn.

Acorn, one of America's most militant left-wing "community activist groups," is spending $16 million this year to register Democrats to vote in November. In the past several years, Acorn's voter registration programs have come under investigation in Ohio, Colorado, Michigan, Missouri and Washington, while several of their employees have been convicted of voter fraud.

Along with other potential recipients of these funds, including the National Council of La Raza and the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we'd be funneling more cash to the groups that helped create the lending mess in the first place. [WSJ, 9/27/08]

Sources

Wall Street Journal
Rush Limbaugh
Conservative journalist Stanley Kurtz
Bret Baier

The Washington Times
' John McCaslin,
Investor's Business Daily

Truth

ACORN, the CRA did not lay "the foundation for" the housing crisis

The Community Reinvestment Act did not lead to many subprime loans. As Media Matters documented, the media-promoted myth that the financial crisis was caused by banks lending irresponsibly to comply with the CRA has been widely discredited. According to housing experts, a large number of subprime loans were not made under the CRA, which applies only to depository institutions.



 


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