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Bush circumvents democracy to give TARP funds to Big 3

Posted 12 Dec 2008 in bailouts, economy, George W. Bush, outrage

As expected, the Bush Administration is defying the will of the American people by riding to the rescue of the Big 3, using funds allocated by Congress for the Trouble Asset Relief Program (TARP) for the bailout.

bush_fingerUnder mounting pressure to act, the Bush administration said Friday it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The most obvious source of help was the Wall Street bailout fund.

“The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry,” White House press secretary Dana Perino said.

Treasury spokeswoman Brookly McLaughlin said, “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.”

There’s just one problem: using TARP funds for an auto bailout is illegal. (h/t: Michelle Malkin)

…Treasury lacks the statutory authority to direct TARP dollars to the automakers. While the statute, passed by Congress in October, grants the secretary extremely broad discretion to decide how to employ the funds, it clearly limits the recipients to “financial institutions.” And the definition of that term is quite clear:
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 doesn’t leave much room for interpretation.

Besides, 61% of Americans are against the auto bailout. Again, I urge you to call the White House switchboard and tell them no means no: 202-456-1414.
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UPDATE: Leslie Carbone wrote the perfect description of Bush’s latest manure maneuver;

“It’s a mockery of the Constitutional principle of the separation of powers…and a fitting cap to a disastrous, big-government Republican presidency.”

Posted by FullMetalPatriot
12th gen. American, Constitutionalist, Harley-riding Texan, gun owner & NRA member, blogger, illustrator, Florida Gator alumnus. #TCOT

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