The recently enacted Fannie Mae/Freddie Mac bailout legislation violates the Constitution in a new and dangerous way. It authorizes the Treasury to advance unlimited funds to the two busted corporate gamblers. Some knowledgeable observers estimate the ultimately cost to taxpayers could well be as much as $1 trillion . . . yes, that's right, a trillion dollars.
In passing the measure the Congress ignored, and in signing it the President will ignore the Constitutional provision that “no money shall be drawn from the Treasury, but in consequence of appropriations made by law.”
In the past, Congress has recognized and obeyed this constitutional principle -- military appropriations even in wartime always specified how much was to be spent for what purposes.
But then the armed forces never lavished millions of dollars on political contributions and lobbying as Fannie and Freddie have. I guess Congress, which not long ago rejected proposals to curb lobbying by the entities we are subsidizing, appreciates their generous largesses and was just returning the favor by issuing our blank checks to them.
Isn't it nice to know that they will be able to draw on our tax dollars to continue these activities as they continue rolling the dice at the high stakes mortgage casino at our expense without restriction?
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