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The Bailout: Wrong, unconstitutional, and illegal?

Two articles suggest that the bailout being considered by Congress tomorrow is wrong, unconstitutional, and illegal. Please contact your Congresspeople and say NO WAY! to this corporate giveaway.

(excerpt from)
A press release by Tim Kern published by News Release Wire:

Moreover, the entire “bailout scheme” is unconstitutional. What the President wants and Congress just about wants to give him cannot come from a Congressional power under “general welfare” [Article I, Section 8, Clause 1: ” The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;”] for many reasons. First, Congress has only the power “to lay and collect taxes,” not put the USA into debt or create money (really, no kidding!); Second, it doesn’t “provide for the General welfare,” since those who are not heavily in debt would not benefit; and third, the tax incidence (“taxes, duties, and imposts”) of such a scheme would not be uniform — those who are not in debt would in fact be taxed more-heavily. [This last is somewhat softened by the 16th Amendment, but even that amendment doesn’t negate this order, since it was clearly enacted for a different purpose – the income tax.]

By Tim Kern, Publisher, Editor from Anderson, IN

(excerpt from)
Article by Richard C. Cook at  OpEd News

Every reputable economist commenting on the bill opposes it, including NYU’s Nouriel Roubini, who says the plan is “totally flawed.”- He says the plan is:

“a disgrace: a bailout of reckless bankers, lenders, and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer.”-

My own view is that the plan is worse than that: a crime; grand larceny on a monumental scale.

Richard C. Cook is a former U.S. federal government analyst, whose career included service with the U.S. Civil Service Commission, the Food and Drug Administration, the Carter White House, NASA, and the U.S. Treasury Department. His articles on economics, politics, and space policy have appeared in numerous websites and print magazines. His book on monetary reform, entitled We Hold These Truths: The Hope of Monetary Reform, will soon be published. He is the author of Challenger Revealed: An Insider’s Account of How the Reagan Administration Caused the Greatest Tragedy of the Space Age, called by one reviewer, “the most important spaceflight book of the last twenty years.”

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