Faster Than a Falling ACORN

More than 90 banks have failed so far this year. In my professional life we projected the number of closures for the full year would reach 200. We attribute the slower pace to a combination of overload and undercapitalization at the FDIC.

An interesting facet of the bank closures is the speed with which the related holding companies and non-bank affiliates shut their doors after the feds cut off the banks.

There seems to be a parallel situation developing at ACORN this week. Just days after ACORN's nominal leader, Bertha Lewis, blew off the effect of a federal cutoff as not significant, the murky mob has laid off workers and shuttered offices across the country.

Either ACORN was more dependent on federal taxpayers than it has admitted or the flood of state funding reversals has had a devastating effect on the network.

President Obama owes ACORN big time. It will be interesting to see what he does for them.