“…nor shall private property be taken for public use, without just compensation” - The Fifth Amendment
But what does the Fifth Amendment have to do with the current financial crises? During the last several weeks, the Federal Reserve (a PRIVATE bank, funded by tax payer dollars…but more on that another time) has intervened and bailed-out (ie. purchased) Freddie Mac, Fannie Mae, and AIG for pennies on the dollar. So other than the stock market collapsing, how does this affect Americans?
So, if you buy a house, most likely you are going to need a mortgage. Whether its from a local bank, a mortgage broker, or some other kind of lender these institutions do not maintain your mortgage. The banks turn around and sell your mortgage to larger institutions (such as Freddie, Fannie, and AIG). “Yeah, we know that!” I hear you saying. So what’s my point?
My point is this: if AIG (or Freddie/Fannie) own your mortgage, and the government owns AIG…who owns your house? That’s right…the government. In one fell swoop, the government now owns the majority of homes in America. Nervous yet?
Clearly, the government feels justified in stepping in as they feel they are doing a public service…but what do we learn from the 5th Amendment? “…nor shall private property be taken for public use, without just compensation.” Hmmmm…so we should be getting just compensation for the government taking over our private property! That’s good news, right??? Well, not so fast…
The “bailout” of these companies is costing the government upwards of $400 Billion (yes, Billion…with a ‘B’), a number that is sure to climb. But where does the government get that money? Correct!! The taxpayers!!! So what is our “just compensation”? Footing the $400 Billion bill (here come more taxes!).
What? You are financially strapped as it is in this tough economy and now you have to pay MORE taxes?? So, now you can’t afford to pay your mortgage and they foreclose. But wait, who is ‘they’? That’s right…the government.
Anyway, sounds fishy to me…Im going back to the Bill of Rights. I seem to remember something about unreasonable searches and seizures…
5 responses so far ↓
1 mike // Sep 17, 2008 at 6:48 pm
yeah i’m now sticking it to the man by not owning a house.
plus you should check out my new comics at
8bit_mike.1up.com
2 mike // Sep 25, 2008 at 5:54 pm
dude the message board for pick em is so lame that i’m comparing it to the comments section of your blog.
3 Chase // Oct 8, 2008 at 11:27 am
$400 billion. ha. funny. With how much they’re talking about spending now, $400 billion is pocket change. Now they’re talking maybe adding another $300 billion to the $700 billion. Ridiculous.
4 mike // Oct 24, 2008 at 5:05 pm
you would think with all of the time you have you would write a new blog.
5 Chase // Nov 10, 2008 at 2:31 pm
Especially after someone intentionally rammed your friend’s car and you have pictures.
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