h1

TARP Money to Detroit is Illegal

December 12, 2008

Thank Heavens the Auto Bailout failed last night, but Bush wants to use TARP money for the bailout.  Last October Congress passed a bill to create TARP to bailout FINANCIAL INSTITUTIONS.  The Big Three are not financial institutions, they manufacture cars.  Unless the Big Three changed their business model overnight, I must assume the manufacturing companies are not in the financial industry.  Any TARP money which goes to bailout Detroit would be in violation of the law you just passed.  Financial Institution is defined as the following:

FINANCIAL INSTITUTION- The term ‘financial institution’ means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.

Stop the Bailout as is.  We need alternative measures.

-reagan21

Advertisements

4 comments

  1. I cannot adequately express the grief and disappointment I feel in my government. I see America crumbling under the weight of corruption and government intrusion into the private sector. My grievance is not with any one party, but rather with the government as a whole. I lost my job on March 10, 2008. I watched the government throw $700B at the financial markets in a rushed manner, served on a platter of fear, and poorly planned. And now I see the program has failed as banks and other financial institutions are hoarding that taxpayer money. The TARP did not help me or others like me at all. No, the government helped the elite.

    I have watched my government try to pass legislation to bail out a completely dysfunctional auto industry with yet more taxpayer money. I hear much discussion about protecting autoworker’s jobs, but I have heard nothing about the rest of us. I am not greatly bothered by this as I am a proud and principled American who will face whatever destiny awaits me.

    The Legislative Branch of our government has a specific job to perform defined by, and within the limits of, our Constitution. When we do not like what comes out of both houses of Congress, we do not presume to believe that the Executive Branch is unconditionally granted the freedom of running rough shod over the Legislative Branch no matter what the interest of the Executive Branch may be. We let the Legislative Branch do its job and we stand by the result of their efforts whether we like it or not – unless it is unconstitutional.

    Now I read that the President is planning on taking unilateral action to draw funds from TARP to bailout the automakers without the consent of my congressional representatives; my Senators and House Representative. Oh, they may not have a problem with your proposal, but that does not in any way make it right or just. It is wrong in principle, and it violates the Equal Protection Clause as stated in the 14th Amendment of our Constitution. In addition, I am of the opinion that such a proposal annunciated by your administration tramples under trias politica. Indeed this model of a democracy is clearly documented in the United States Constitution, Article I, Section 8: which places all the power of the government in the Congress to make all the laws.

    Yet the sum of all guidance divined from our Constitution is being set aside for what might be considered for the good of the many. However, is setting aside our Constitution, for even the most noble of causes in fact and in truth serve the greater good? I should think the founders of our country and the framers of our Constitution would answer in the negative.

    The TARP was funded for the purpose of assisting Financial Institutions. I direct your attention to the following interpretation of “Financial Institution” as documented in the TARP bill (Emergency Economic Stabilization Act of 2008, Public Law 110-343):

    Financial Institution – The term “financial institution” means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.

    This definition contained in the statute does not leave much room for interpretation.

    Automakers are not Financial Institutions and thus, to draw funds from TARP for any other purpose than to assist Financial Institutions without the protection of representation afforded me by the Constitution and through my Senators and Representative is wrong by any measure. And should my Senators and Representative not act to prevent such action is to abrogate their Constitutional duties and responsibilities and render them unfit for presiding over the matters of, and brought forth by the people of the United States of America.

    Should you proceed, you will release America into a deep and unexplored abyss of historic proportions. I advise good measure and profound thought before you make any decision in regard to drawing taxpayer dollars from TARP to be given over to any public or private business that does not meet the definition of “Financial Institution”.

    Thank you.


  2. Whats funny is, the republicans just handed 700 billion to the banks with NO strings attached. None of that money has been accounted for or used for its intended pourpose. And they are talking about giving them MORE. Then the Auto Industry, which employees hundreds of thousands of people, has to jump through hoops. They are questioned about everything, which they should be, and are still denied. If you do this to the auto companies, why not the Banks?


  3. I was unaware the Republicans handed it over News to me? I am pretty sure this was the bipartisan movement Obama dnReid were speaking of this election cycle. We are in accord. We do not like the bailout of ether the banks or the auto industry.


  4. As a true conservative and someone who voted for Bush 2x (no,not Acorn’s version of 2x per election), my disgust and disdain for him is now complete. Caving to the UAW with this auto bailout will be the final nail in this idiot’s legacy coffin. Come March ’09, when the “Small 3” will no doubt present a bogus “viable” path to profitability, tens (maybe hundreds)of billions more of taxpayer money will be flushed down the toilet by Obama, Pelosi, Frank & Co. It is absolutely maddening to hear liberals howl how we had no problem saving “Wall Street” with the
    “brutally flawed” TARP, but won’t pony up for the autos with their “save the worker” battle cry. Please note just a few minor points:

    1. Saving “Wall Street” was saving “Main Street”. Just ask California customers of Indy Mac who lost 50% of their deposits (after the FDIC’s first $100k).

    2. Wall Street saw the overnight demise of two of the world’s most renowned investment banks (Bear, Lehman). Further, since TARP Wall Street has announced over 100,000 layoffs. Haven’t seen any such Darwinian evolution coming from the autos or UAW.

    Conservatives had better start uniting, or this country will be an unrecognizable, permanent welfare state in fours years and America’s demise will be ‘fait accompli’.

    Oh, Bush’s legacy?

    1. Overseer of America’s worst financial crisis since the Great Depression.

    2. Blind stewardship of America’s worst foreign policy disaster(although a certainly valid war)since Vietnam.

    3. ‘Drunken Sailor Award’ for America’s greatest government expansion and entitlement programs since the Great Society.

    4. Leaving office with the GOP in ashes.

    His train to Texas can’t come fast enough…



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: