As America peers into the economic abyss, radical community organizer groups are itching to get in on Treasury Secretary Henry Paulson’s big bucks, Big Government bank bailout action. (Maybe we should call it BBBGBBA.) The push comes after President George W. Bush caved this summer and signed another housing bailout that contained slush fund language.
As first reported by Warner Todd Huston of NewsBusters, Democratic lawmakers have been attempting to insert language into the bailout package to siphon off 13%* of profits (if there are any) from the sale of troubled assets and put it into a slush fund called the Housing Trust Fund. Here is the wording, apparently from Senate Banking Committee chairman Chris Dodd (D-Connecticut):
TRANSFER OF A PERCENTAGE OF PROFITS.
1. DEPOSITS.Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
2. USE OF DEPOSITS.Of the amount referred to in paragraph (1)
1. 65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and
2. 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).
REMAINDER DEPOSITED IN THE TREASURY.All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.
The proposed fund resembles the Social Investment Fund Network that was inserted into the Democratic Party’s official platform and that Senator Barack Obama has proposed.
As Michelle Malkin has pointed out, the fund “would serve as a permanent, taxpayer-backed pipeline to Democrat partisan outfits masquerading as public-interest do-gooders.”
HotAir has an excellent post on the topic here.
*It seems to be 13%, anyway. The fund would take 65% from the 20% so that’s how I arrived at the figure of 13%.