One of the students in my Constitution Class asked me about Obama's mortgage shake down of the banks, and I responded as such:
Mr. XXXXXX,
Sorry I didn't get around to this topic tonight, but I will be glad address it here. First of all, the banks were not the cause of the problem. The banks made those loans under pressure by the federal government. Now, like them or not, the banks are private entities. The best regulators of the banks are the customers. If the banks are out of line, they will eventually wind up out of business. Obama, however, says the banks are a problem, and he blames them for a lot, yet he bailed them out. Also, one of the five banks on this list is Ally Financial, which is GMAC, which is General Motors. I am sure you know where I am going with that one. GM got a bail out, and now they are going to pay for their sins as per Obama, with taxpayer money they received through the bailout.
Mercantilism gone mad.
That said, let's get to the nitty-gritty. First of all there is no authority granted to the federal government to regulate the banks, nor is there an authority for the federal government to force the banks to pay out a settlement. Also, and this is important, the federal government is not authorized to issue bills of attainder (punishment without due process). Obama has decided the banks are guilty, and he is making them pay out a settlement as punishment. Was the evidence evaluated? Was there due process? Did the banks have the opportunity to face their accuser and hash it out in court? No.
This $25 billion mortgage settlement has unconstitutional written all over it. But would you expect any less from Obama?
Blessings,
Douglas V. Gibbs
www.politicalpistachio.com
No comments:
Post a Comment