The Obama Administration is asking Congress to expand their authority to seize non-bank financial companies such as insurances companies, investment firms and hedge funds in its expanding web
of power.
Treasury Secretary Timmy Geithner is scheduled to argue for the new expanded powers today during his appearance before Congress---when questioned by Michele Bachmann, as to the Constitutional authority to engage in the practices it has undertaken with AIG and other's, Treasury Secretary Geithner, fumbled around for an answer and never could cite the Constitutional provision that authorized the Dept. of Treasury to take any such action.
In a free market economy successful companies grow and expand while failing companies either reorganize or go out of business---the Obama Administration wants the authority to choose which companies should be saved which in its opinion may damage the broader economy.
Under the new authority, Treasury would be allowed to nationalize private businesses by purchasing assets, guanateeing loans, buying equity positions and renegotiate contracts including labor agreements.
Government bailouts of banks, insurance companies and mortgages have put Trillions of taxpayers money at risk during the past year and have resulted in the fiasco such as the AIG debacle which authorized paying executive bonuses for failure.
More here from Pat Dollard
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