Less than 3 weeks ago I penned a post with the heading This President Don’t Need No Stinkin’ Congress To Change The Law. Judging by his comment this week he thinks he doesn’t need Congress to make new law either.
“I’ll work with anybody who wants to work with me to continue to improve our health care system and our health care laws, but the law I passed is here to stay,” Obama said at a campaign event in Ohio.
It was not a Freudian slip either; it is simply the way the man sees himself and his presidency, Obama the omnipotent. Remember the presidential like seal he had emblazoned on the seat of his campaign plane, and the Roman columns for the Inauguration? In one of his early acts as President, he subrogated bankruptcy law to his own dictate by ignoring the legal rights of Chrysler’s secured bond holders and awarding their money the labor unions. That was June 10, 2008.
A year later Charles Rowley recounts the event.
“June 10 will be a silent anniversary, but one worth noting by those alarmed at the past year’s assault on free institutions. It was last June 10 when the federal government tossed aside the option of proven workable bankruptcy procedures in order to nationalize Chrysler on behalf of its union allies.” Mitch Daniels, ‘Hoosiers vs. Crony Capitalism’ The Wall Street Journal
The Chrysler intervention by Barack Obama breached the rule of law and categorized his administration as yet another Third World despotism that despises the rule of law and forces discriminatory practices down the throat of a weak and cowardly judiciary. It provides an almost perfect example of state (crony) capitalism at its worst in the hands of an unscrupulous would-be tyrant.
If it’s the law you say, surely the bondholders had their day in court.
Naturally, the secured bondholders started out by defending their legal rights. Obama’s apparatchiks (notably Lawrence Summers and Timothy Geithner) attacked them mercilessly, warning of the serious consequences that would surely follow from their continued resistance. Large numbers of secured bondholders chose safety over liberty and acquiesced to federal pressure.
The tagline Saul Alinsky used to introduce the Rules for Radicals chapter called Tactics is “We will either find a way or make one.” When a gangster is holding a gun to your head it does no good to argue with him about the law. Obama’s gun was the bailout money.
• During the U.S. auto bailout of 2008 and 2009, Obama’s ally, the United Auto Workers, saw its unsecured claims win out over those of secured bondholders, an unprecedented alteration of bankruptcy law that violated bondholders’ legal rights. The move was augmented by a politically motivated investigation against rival Toyota, with Transport Secretary Ray LaHood telling Americans not to buy Toyotas.