Posted by Matt Hawes on 12/12/08 07:32 AM Last updated 12/12/08 1:22 PM   [Newer: Jim Rogers: Most U.S. big banks bankrupt] [Older: "Ron Paul: Bailouts Will 'Destroy the Dollar'"]

Coming on the heels of the auto bailout's defeat in the Senate, the White House and the Treasury are announcing their intentions to take money from TARP and act anyway.  If it hasn't been apparent to mainstream conservative voters that legislative check and balances mean nothing to this administration, it should be clear to everyone now.

The UAW announced this morning that they want the Treasury or the Fed to act "for the good of the country," yet they refuse to renegotiate their contracts in an attempt to have their cake and eat it too.  Their "woe is me" defense in their press conference just doesn't cut it anymore.

GM and Chrysler refuse to consider the bankruptcy option because they are afraid that consumers won't buy cars from bankrupt companies.  Do they really expect more people to buy cars just because the car companies have been given a loan to prop up the unions and continue their unsound business practices?  

Ironically, more customers may stay away out of anger over watching the heads of these companies literally begging at the federal trough for your money. 

Posted 12/12/08 07:39 AM Knighted Hudson, NH

The Fed already has been granted their Fist by the corrupt, and they will use it until we bring it down.

Posted 12/12/08 07:40 AM boohickey11 Bowling Green, KY

At least the money isn't coming the Federal Res... wait.. where does the Treasury get its money?

Posted 12/12/08 08:11 AM Justin DeWind Grand Rapids, MI

Not surprising that they completely subvert Congress and their constituents. Ladies and Gentlemen this is also known as tyranny.

Posted 12/12/08 08:12 AM Justin DeWind Grand Rapids, MI

Thought Congress should share the blame in completely surrendering themselves to the will of the executive branch.

Posted 12/12/08 08:12 AM BruceKoerber Cedar Rapids, IA

Who do these economic imbeciles think ultimately make decisions to buy and save? Are consumers going to marry whores just because their pimps (FED, Treasury, Executive Branch, etc.) say they are going to be faithful in the future? How will the members of Congress feel now that they had their pants pulled down by the FED, Treasury, Executive Branch, etc.? Will this disgrace be enough to cause enough of them to question themselves about their ethics and their oath of office.

Posted 12/12/08 08:35 AM BDK22980 Waynesboro, VA

TIME TO GRAB YOUR PITCHFORKS AND MAKE YOUR POINT CLEAR TO BUSH AND PAULSON.

Posted 12/12/08 08:48 AM FillBax Linwood, PA

Hope congress now sees the errors in delegating their powers to other branches of the government. I also hope the American public sees it as well and votes all of them out next time around.

Posted 12/12/08 09:02 AM hazak Penfield, NY

So when is the Congress going to seriously consider impeachment? Is this an impeachable offence? I would think giving Congress the finger would constitute some kind of outrage by it's members. I keep seeing the picture of chickens running around with their heads cut off. The Keystone Cops, and other comedy routines run through my mind. I think the idea of One and Done is appropriate. All incumbents are voted out of office. You get one shot and then you are out. Maybe having a bunch of freshmen not even knowing where the bathrooms are in the Capital will have the effect we really want... paralysis.

Posted 12/12/08 09:05 AM Godspeed Cressona, PA

jekorbel, I know how you feel; God knows they are not true Americans. They care not, and we know where they stand.

Posted 12/12/08 09:14 AM sweetliberty San Rafael, CA

This is craziness! Why bother going through with Congressional voting if the Executive is just going to do what he wants anyway?

Posted 12/12/08 09:22 AM LogisticEarth Conshohocken, PA

This is a clear and shocking example of how our system of checks and balances has been subverted. We need to do something about this soon or we're going to end up setting some very, very bad precedents in the future. This autocratic behavior needs to be stopped right here.

Posted 12/12/08 09:32 AM Andrew Sica Woodbury, CT

hazak, I would think you could write a book on all the impeachable offenses committed in the last 8 years.

Posted 12/12/08 09:38 AM mirand sharma Celebration, FL

THIS IS GOVERNMENT RUN AMOK!!! NO GOLD STANDARD= WELFARE STATE, WARFARE STATE, AND AN INEVITABLE POLICE STATE.

Posted 12/12/08 09:42 AM ifthenwouldi Wendell, NC

If only our elected representatives hadn't freely given the Executive this power...

Posted 12/12/08 09:42 AM faithful.witness Greenville, TX

Besides the 14 billion dollar bailout, in hopes to recover the unsound business of these automakers, the extremity of the 700 billion dollar bailout is and has been much more of a relevant opposition. I am appalled and bewildered on the retrospect of how this entire economy works-"Money is debt". Inflation and Interest are branches of the corruptible government and the corruptible banking system (federal reserve). We HAVE NO MONEY SUPPLY! It's all created out of thin-air and recycled again. Americans cannot live freely in a country that creates "nationalization". I thought the free-market economy involved both failure and success? I thought the market was created to help the consumer, not for the benefit of the business owner? These last days are such as the days of Noah and so shall be a sign in the heart of men, the evilness continually, but lo the Son of Man will come in clouds of glory and claim his bride for eternity. That is the direction of my faith!

Posted 12/12/08 09:44 AM JFeldman Kearney, NE

You have to love Harry Reid though, he didn't even want to look at the markets today, lets see, yep, the DOW and NASDAQ are both up right now. WRONG AGAIN HARRY, U R A RETARD!

Posted 12/12/08 09:47 AM fadestyle Walnut Bottom, PA

TIME FOR THE PITCHFORKS!

Posted 12/12/08 09:49 AM fadestyle Walnut Bottom, PA

how do we organize some kind of mass country wide protest? anyone interested?

Posted 12/12/08 09:50 AM Felegund Jonesville, KY

Make that two books, anrewsi. One the size of the bible listing the offenses, and the other another 6-700. No way anyone would buy that as one book.

Posted 12/12/08 09:54 AM AuthenticAuthor Canutillo, TX

Sweetliberty: Couldn't have said it better myself... The Emergency Stabilization Act of 2008 unfortunately did grant so much power to the executive branch to the point where practically any institution may technically be given TARP funds. Congress essentially delegated most of its responsibilities to one individual illegally, so where's the checks and balances? I'm appalled at Obama for turning a blind eye to what is easily one of the greatest crimes being committed. A guy who won the election on a message of "hope" is no more than a fraud. He is no president of mine, and probably never will be.

Posted 12/12/08 09:58 AM Ryan Sheets Louisville, KY

No need to write a book. There's a couple trillion pieces of worthless paper listing the impeachable offenses floating around in banker pockets right now.

Posted 12/12/08 10:12 AM Heather D Port Byron, IL

Not that this would ever happen, but is it possible for the Congress to repeal the original bailout? The only way to prevent Paulson and Bush from spending this money however they see fit is to repeal that bill which GIVES them the power to do what they want with no checks and balances. As it stands now, at least according to MY understanding, the Congress and the Courts have no say in what happens to the money. The claim made by the Congress that checks and balances were written in was a smoke-screen. I have no faith that the Congress would act to repeal the bill, even if they could. They are salivating over the power that Obama and his new administration will now enjoy.

Posted 12/12/08 10:13 AM Edward Hipps Langhorne, PA

I posted this comment in the other blog about the Senate voting down the auto bailout. CNBC changed the article that I had found with the quote from the Treasury spokeswoman saying they "vowed" to save the auto industry. Looks like they said something they shouldn't have.

Posted 12/12/08 10:13 AM sweetliberty San Rafael, CA

Fadestyle, I'd be interested. But it would have to be done on a weekend, as we workin' folk can't afford the time off. Maybe we could leverage that point to our publicity/marketing advantage.

Posted 12/12/08 10:23 AM Ryan Sheets Louisville, KY

Who needs checks and balances when you can just have checks? Amirite? Amirite?

Posted 12/12/08 10:34 AM Paul S. Brighton, MI

I believe the Unions are right. Government should not be forcing them to do anything for the good of anybody. Austrian economics predicts their behavior and even applauds it. Rational self interest is the first law economics. Why don't the auto companies go to the banks? Could it be that they want to use the force of government to coerce the unions to break economic law? How can we help the Union member understand that the inflationary system steals from the middle classes? Their best interest is the disestablishment of the Federal Reserve and its unsound money products. They represent the middle class and we need their help if we’re to dump the FED. C’mon folks, we’re an educational group. Why do we think we know better than the unions on how to survive as laborers in this crappy economic system? Will forcing them to accept lower wages help us transition to a healthier system?

Posted 12/12/08 10:38 AM Paul S. Brighton, MI

Congress could repeal the Emergency Act of 2008. If would require a quorum so they could override the President's likely veto. Not only that, they write checks with negative balances ;-)

Posted 12/12/08 10:45 AM dammerung Santa Cruz, CA

Why can't Ron Paul filibuster some of this crap? Does he need the support of the rest of The Party by congressional rules?

Posted 12/12/08 11:06 AM BillNM Carlsbad, NM

What checks and balances? The Constitution made no provision for these. The only check or balance is in the people themselves; and they are just ignorant in the main.

Posted 12/12/08 11:14 AM mwarden Hamilton, OH

"If it hasn't been apparent to mainstream conservative voters that legislative check and balances mean nothing to this administration, it should be clear to everyone now." Mr. Hawes, you've missed the mark on this one. The Bush administration is doing absolutely nothing wrong in this instance. Congress gave the executive branch power over TARP funds to do with them as it saw fit. And it is doing so. As long as Congress gives increasing power to the executive, we should not be surprised that the executive uses it.

Posted 12/12/08 11:17 AM WarIsARacket Boynton Beach, FL

This is very disturbing. I can’t even write my senator anymore because his voice apparently doesn’t even count. What can I do? This is defeating…..I feel America is dead.

Posted 12/12/08 11:27 AM Paul S. Brighton, MI

Except that TARP itself is unconstitutional.

Posted 12/12/08 11:35 AM dammerung Santa Cruz, CA

Well, neither the Constitution nor the will of the people has been relevant in Washington for 100 years or more. The regime in Washington has no legitimacy, and more people realize that every day. The poison of authoritarianism seems to have rotted us from the inside out. I wonder if the same people who supported Bush soon after 9/11 are the same ones who are Obamatrons now? People just aren't getting it - it doesn't matter who is in office or what their intentions are. Government cannot solve the problems we face, it can ONLY make these problems worse.

Posted 12/12/08 11:36 AM AngelaTC Fenton, MI

This is spending that did not originate in the House. Can't a Congressman somewhere file a motion with the SCOTUS to stop it?

Posted 12/12/08 11:40 AM AngelaTC Fenton, MI

"how do we organize some kind of mass country wide protest? anyone interested?" We desperately need a leader, it seems. I'm in Michigan - we the people should be surrounding the auto plants to stop them from operating.

Posted 12/12/08 11:44 AM Paul S. Brighton, MI

I wonder what it was like, stationed at Valley Forge with the weight of the Britsih Empire threatening you. The first American Revolution started in 1775 and lasted until 1783, eight long years. The government is only as good as the people who work to keep it to its honest purposes. At least that what I tell myself when things seem dark. Remember, we're all in this together.

Posted 12/12/08 11:46 AM dammerung Santa Cruz, CA

>>The first American Revolution started in 1775 and lasted until 1783, eight long years. Eh, if you want to imagine what an actual violent resistance against this regime would look like -- one is happening in Iraq. Not a pretty picture.

Posted 12/12/08 11:47 AM Edward Hipps Langhorne, PA

I just wrote this letter to Bob Casey Jr., a democratic Senator from PA. This is of course after numerous letters to him and automatic responses given back to me that said he was helping the people of Pennsylvania and looking out for their best interest. Here is what I had to say to him today: In light of what has transpired in the last 24 hours, I am now left sitting here wondering why we even bother with having a Congress, seeing as the Senate stopped the bailout of the "Big 3" Auto companies, but yet we are still giving them the money anyway. This seems like we are wasting our taxpayer's money now, not on the bailout, but on all the members of Congress. Why do we pay you if your power to represent us is no longer there? This is a great misfortune to all Americans that we no longer have any representation. Instead we have men and women serving their own self interest. You gave your power away in October, so now we the people have none. Today is a sad day for our nation. I even went the extra mile here and sent it through congress.org "extra impact". Meaning he's getting this hand delivered to his office. Hope he likes it. (this is also posted in my blog if you'd like to comment on it)

Posted 12/12/08 11:53 AM ifthenwouldi Wendell, NC

"You gave your power away in October, so now we the people have none." Brilliantly worded, r3V0Lution77.

Posted 12/12/08 12:20 PM ambientsummer Westminster, CO

"Our adversaries consider that an activity which is neither aided by supplies, nor regulated by government is an activity destroyed. We think just the contrary. Their faith is in the legislator, not mankind; ours is in mankind, not in the legislator." -Frederic Bastiat

Posted 12/12/08 12:25 PM ambientsummer Westminster, CO

Because it is more evident now more than ever that our efforts as The People are in vain in these 'legislative' matters. I would encourage all of you to read Etienne de la Boetie's Discourse of Voluntary Servitude. It may be found at the mises institutes site (you can download if for free), I paraphrase it in a blog. Its very revealing and probably more relevant now than when it was written (I think 17th century?). It will enlighten you. Looking for ideas? Look no further than Boetie's excellent examination.

Posted 12/12/08 12:51 PM TEastham Windermere, FL

Shouldn't the President need to approach the Congress to change the stipulations of the TARP to use it for the Auto industry? How can he legally circumnavigate the system like he is doing? Where is the Judicial branch during all of this? Why are they turning a blind eye to this travesty? For example: My boss gave me $100 to buy pens. One of my coworkers asked my boss to have $50 for staples and was refused. What do you think would happen to my job if I handed $50 of that $100 to my coworker so that he could buy staples with it? Insane!

Posted 12/12/08 12:53 PM DA521 Fair Lawn, NJ

No one gets it! The deeper the hole they dig four us, the more people will demand more digging. people are getting laid off like flyes (10% of my company just today), and I bet they all now thank the government when they start to receive their unemployment benefits.

Posted 12/12/08 12:59 PM MN Stix Waite Park, MN

Why is everyone here so angry about this? Perhaps this will be the b*tch slap congress needs to start a remedy to this outrage. Hey, I lost my job due to the economic crisis...where the hell is my bail out? I have a house to pay for you know. I was thinking of sending my mortgage to my Senator to pay.:D

Posted 12/12/08 1:04 PM DA521 Fair Lawn, NJ

TEastham, There is no Judicial branch. If we had one, we wouldn't be in this mess. Also let's face it, our judicial branch is fill with judges appointed by politicians so what't the point? That's one of the things they screwed up, I don't know what they were thinking. Also when they do take a case, they usually do more harm then good by legitimizing the action of Congress and the President.

Posted 12/12/08 1:27 PM Son Of Liberty Erie, PA

WTF!?!?!?!! There is no difference between this administration and a dictatorship! Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power. Benito Mussolini

Posted 12/12/08 1:44 PM TEastham Windermere, FL

MN Stix, Unfortunately, you are not big enough to fail. You should start buying more houses now so that when you go under you will have the largest impact on the economy as possible.

Posted 12/12/08 2:04 PM Fu Manchu Belleville, MI

It seems to me our writing to our congressmen, posting blogs and shouting from the rooftops is all for not. Fadestyle, I'm with ya brother, I got my pitchfork packed and ready to go!

Posted 12/12/08 2:26 PM Mike in Virginia Fredericksburg, VA

dammerung: Ron Paul can't filibuster because the House rules don't permit it. Only Senators can filibuster.

Posted 12/12/08 2:43 PM JFeldman Kearney, NE

Not sure if anyone is interested, but here is how to send messages to the Federal Reserve: http://www.federalreserve.gov/Feedback.cfm unfortantly the treasury doesnt have a form like this...

Posted 12/12/08 3:22 PM spongessuck Glen Mills, PA

I just sent this to my Rep and Senators through congress.gov. I usually get an answer when I send emails through it: I am once again at a loss for words that every one of the people elected to represent me feel they can freely give the rights to my money away to the executive branch, and then vote again in favor of stealing yet more money from me to give failing companies a few billion more dollars to send down the tube. However, this total and utter defiance of a congressional vote by the White House and the Treasury is absolutely outrageous. It is tyrannical. It makes a mockery of everything this country ever was and ever fought for. And yet, they are doing nothing illegal: BECAUSE YOU GAVE THEM THE POWER TO DO THIS. I don't care what party you are in, but repeal TARP funds, start impeachment processing: DO SOMETHING. Stop it before you no longer have the power to do so, because doing nothing is worse than doing something: that's your credo, right?

Posted 12/12/08 4:13 PM Philip State College, PA

As others have said, please note that CONGRESS delegated its appropriation power (unconstitutionally) so how surprised should we be that Bush is now going to exercise it? Click my profile for a new blog entry on the unconstitutionality of the bailout!

Posted 12/12/08 5:54 PM C00kieM0nster Oxnard, CA

This country sure seems to have problems with "rulers" named George, doesn't it? To anybody who thinks it to be and old piece of paper, let this be a lesson as to why the Constitution structured our republic in it's original fashion...Checks and balances against human nature. They will always argue that we have surpassed the scope of the Constitution with our technological advances, our modern society, and modern issues. Perhaps so. But all the technology in the world will never erase human nature. Who are these men of lust, greed, and glory? Rip off the masks and let see.

Posted 12/12/08 6:38 PM Fu Manchu Belleville, MI

TruthisTreason: What is that going to accomplish? Blaming the automakers for asking for money is like blaming a shovel for digging a ditch. Your blame is misplaced. When someone tells you they killed your friend, do you shoot the messenger, or do you go after the bad guy? My point is there not breaking any laws simply by asking for help. And if the big 3 go under because of all the so called boycotters on this board, the only thing that will do, is make us completely dependant of foreign country's for our transportation. That's one hell of a Revolution!

Posted 12/12/08 10:37 PM Rick Vandeven Chaffee, MO

Easy there Fu Manchu! You know the real reasons the Big 3 are in trouble, and those reasons have absolutely nothing to do with the C4L! The current state of our once great automobile makers is breaking my heart. While I have never been employed by GM, Chrysler or Ford, I have owned several of their products over the years, including some from the glorydays! I attend as many car shows during the summer months and reveal in this country's proud past when I see what at one time was the world standard bearer. I love all Packards, Plymouths, Nashs, AMC's, Studebakers, Stutz', Franklins, REO's, Cords, Auburns, Dusenbergs; all names from days long gone that we will never see or enjoy again. I am the proud owner of one of those gone innovative brands - a 1968 Oldsmobile Cutlass S. It is a headturner everytime I drive it; that car just makes people happy. Why don't American cars make people happy anymore? Why won't people pay for American cars? In 1977 Oldsmobile sold over 1 million Cutlass'. Now the nameplate doesn't even exist. Where did we go wrong?

Posted 12/13/08 02:56 AM Tumbleweed Steve Berecek Garrettsville, OH

This issue touches me personally, as I am about to embark on my retirement from what is now known as Chrysler LLC in less than a week. And whether you know it or not, or care to admit it or not, this issue touches you as well. Because no matter WHAT business you are in or service you provide, if over three million people wake up in the new year out of work due to the big three folding...WE'RE IN SOME DEEP DO-DO Bucky. Take that fiat to the bank...(your chioce here). I was against THE bailout way back when our representatives STIll were not listening to us and managed to pass THAT trainwreck legislation...and I still am. But I believe we have a real problem here, because once again the MAINSTREAM MEDIA MASS MIND MANIPULATION MACHINE has managed to do the nutshell game, and this time even on many of YOU who I considered to be "educated" and "enlightened" to the ways of the deceptors...at least so I thought. What about those hundreds of billions handed without question to the banks and AIG??? Hmmmmm? And how much of the bailout money do you think "they" will be paying for with "their" taxes? Hmmmmm? At least (if nothing else) a "loan" to the big three would keep some people working that will be paying taxes that WILL go in that general direction. Not that this is a "good" thing at all. But better than to keep handing money to the banks that have raped us for years, and will continue to do so. (if you let them that is) At any rate, I would like to point you in the direction of this very enlightening artical. And I hope you take ALL information into consideration. Got a job? Pay attention. http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=83120 "Ha ppy Trails" Tumbleweed Steve

Posted 12/13/08 05:37 AM JJR1985 Shelby Twp., MI

I'm done sending messages to this forsaken government, they have made their bed, the time will come for them to lie in it. The next message I send won't be delivered through the internet, it will be delivered via air mail...hope they catch one of my messages before it wizzes by them.

Posted 12/13/08 07:06 AM filosophia Columbus, OH

My newest public enemy: Treasury spokeswoman Brooklyn McLaughlin "Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Because Congress "failed to act" !? I think they acted and acted right. Because they didn't "do what you wanted" Although I couldn't find a picture of Ms/Mrs. McLaughlin I have a sneaking suspicion she is too young and too attractive for this position (like Dana Perino) Though since there is no known image of her on the web, maybe it's the opposite...who knows.

Posted 12/13/08 07:16 AM FreedomNow531 Pawtucket, RI

This is downright Illegal. How can they even justify what they are talking of doing. If this goes through I call for a Nationwide Boycott of any & all of their cars.

Posted 12/13/08 10:14 AM C00kieM0nster Oxnard, CA

Nice article Tubmleweed Steve, but is is full of classic examples of bending statistics to make a case, and flat out falsehoods. Let me start with the most obvious: "(ever heard of the Chevrolet Volt, senator?" -You mean that car they have NOT built yet? Where exactly will it's fuel source come from? Electricity? And what generates much of our electricity in this country? Fossil Fuels. That, and proven battery technology, is going to have to change before electric cars are viable. "The lowest cost car to buy and operate is a Chevy Aveo." -Not even a Chevy. It's a Daewoo (Korean). So how exactly does that count as American? And this small of a car should be getting 40MPG at least!!! "GM makes more cars that get over 30 mpg than any other automaker..... -That entire argument is BS. I have never driven a late model American car which has met, let alone surpassed it's sticker EPA mileage ratings. Reading consumer reports, and blogs this is a fairly pervasive pattern. The last Malibu I drove...26MPG. My Subaru was rated at 25MPG sticker, and I routinely get 28. I would sooner believe the govt's falsified inflation numbers. I could continue to rip this article but I don't want to waste more everybody's time than I have already. I want a thriving American auto industry as much as anybody, but I want one that can compete. We NEED one that can compete on the world stage. Not one that is protected, and at the same time crippled.

Posted 12/14/08 11:40 AM Golden Halo Billings, MT

Why doesn't everybody take all of their money from the banking system and put it into Liberty Dollars! Then all businesses and individuals that want to restore our country simply need to convert US Treasury Dollars to Liberty Dollars until the US Dollar is so depreciated in value that you refuse to accept it. From that day on ONLY accepting Liberty Dollars which are based on a Gold or Silver Standard system! That would put a dent in their wallets, but they will try to use Force to keep their power and control!