One of the big temptations you face when your blog grows in size is to take advantage of the handy soapbox and use it to promote other causes. I promised myself when we started Doom that we would stick to housing here, and use other forums for other worthy endeavors.
I think that for the most part, we’ve been successful. [Although we do occasionally digress in the comments.] We’ve added the world of lending to our topics, however, as after all, housing and lending are joined at the hip. Available credit affects house prices, and house prices affect the underlying assets of lenders.
Recently, we’ve had to add to the focus and look at legislation, as legislation clearly is affecting lending, thereby affecting housing. The bailout bill [Sorry Senator McCain, I'm not calling it a "rescue". If it walks like a duck and quacks like a duck...] is a prime example.
Today though, the machinations of the Senate have pushed me to the limit, and I’ll ask your indulgence as I take on a slightly different topic here- the rule of law.
NEW YORK (CNNMoney.com) — The Senate plans to vote on the $700 billion bank rescue plan Wednesday evening - two days after the House failed to pass it.
Wait a minute- it’s been awhile since my high school civics class, but the version of the Constitution I studied said this:
All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
Not to worry, Senate leaders have found a way to circumvent this annoying detail:
Because the bill must originate in the House, the Senate is attaching the rescue plan to a bill that deals with renewable energy tax incentives. This would allow the Senate to vote before the House.
Huh? Did the Founding Fathers really intend that if the House votes down a revenue bill, that the Senate should just be able to turn the whole thing into an amendment and attach it to something else?
Apparently it doesn’t matter- our government leaders have determined that the ends justify the means. According to Senator Harry Reid (D-NV) yesterday:
“The most important job that we have as members of Congress is to safeguard the physical and fiscal security of the American people,” Reid said in morning floor remarks. “Despite yesterday’s setback in the House of Representatives, this continues to be our No. 1 goal.”
I would like to remind Senator Reid what he once said his number one goal was:
I do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter: So help me God.
I don’t like the idea of a global financial meltdown any more than anyone else. The loss of our freedom and rule of law, however, scares me far more than any economic crisis. The American people have had to fight our way out of economic crises before. We’ve also had to fight our way out of the rule of tyranny. I believe fighting our way out of our economic problems is the easier battle.
There is only one thing about the "New and Improved Bailout Bill" that appeals to me:
The revised bailout bill also includes a "Mental Health Parity" provision, which would require health insurance companies to cover mental illness at parity with physical illness.
Perhaps this will get our legislators the help they need–I think any of them that choose to ignore their constituents, use fear-mongering to manipulate public opinion and then twist the Constitution to suit their own ends are out of their minds.

Or, perhaps this one is more appropriate:

get a room full of lawyers together and you usually get anything but the law. These are the the same people that are always crying we must follow the rule of law when it politically benefits them and conveniently ignores it when it doesn’t. This group of lawyers can take credit for the housing mess. It’s going to take non-lawyers to end it. And the rest of our economy is going to suffer in the mean time. What a disgrace to our country. Igor says burn. I’m not going that far. I just say throw the bums out.
Is there anything that would prevent these guys from puting a handful of the top economists in room during these negotiations? If I’m sick I want a doctor in the room, not a bunch of lawyers. If the economy is sick, shouldn’t we get the best economic minds in the room, not a bunch of lawyers? I agree with freemonster…when suits them, the constitution is perfect…..when it doesn’t it is “flawed” or “open for interpretation.”
Placing riders on bills is really the number one thing that Congress needs to fix. Its a political weapon with no redeeming value. Most of the time its used for either pork barrel projects or to smear a politition for his next campaign by placing a ridiculous rider onto an otherwise good bill. Just so they can point the finger later and claim he voted to raise taxes,kill babies,support xxxxxx (your personal pet peive here)
Riders represent the worst failings of our government and no one is ever eager to get them fixed for fear that when their party is in power they will not be able to use them
Ouch! I just got bitten by The Credit Crunch!
Took a gander at my online banking, and, what’s this? The credit limit on my Visa card has been cut! By $25.00!
I guess that’s the punishment I get for never, ever carrying a balance on that card. I pay it down to zero every month.
My bad.
arizonaslim,
me too! however, mine was a couple months ago. they froze my lin of credit. they did this though 3 days after they cashed my check for $50 (annual fee)!!! i called and said that this was fine (as i had it for two years and never touched it) but give me my $50 back, close the account (don’t “freeze” it) and release the lien on the property. they did….eventually. guess it was my fault for not using it. funny how the responsible borrowers are feeling the pinch.
twist -
Very OT, but I can’t resist. This Barron’s headline read just like one of those old non-sense messages they used to put on the war-time BBC to inform one of William Stephenson’s agent’s to activate the Q-bomb countdown device: “Backwardization Sets In: Banks Loosen Lending, Stocks Set To Fall — WALL STREET STILL FOCUSES RAPTLY ON BELTWAY“
“Foolish,” says Igor. Well, yeah …
John-
What got me was this statement in your Barron’s article:
Unbelievable
twist -
This post is being cited here by The New York Observer.
Ummmm, people, I’m feeling really stupid, but it’s not Visa being annoying at all.
The real deal is that there’s a charge that I made on the card this morn. Which isn’t showing up on the online banking, but I can see it on PayPal.
So, blame the online banking for not showing the charges in real time. For once, the big evil credit card company is innocent.
I stand corrected.
Is there such a thing as Outrage Fatigue?
“Analysis: A vote with unforeseen consequences?”, by David Espo, Associated Press, October 1, 2008.