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Lawsuit filed to stop AIG bailout, tax the wealthy instead
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by Tina Kells | September 19, 2008 at 09:14 am
2020 views | 16 Recommendations | 14 comments
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A More Perfect Union: The Creation of the U.S. Constitution
uploaded by Rhonda J Mangus
A federal lawsuit filed late Thursday on behalf of US taxpayers attempts to put a halt to the AIG bailout. The petition, filed in a US District Court in Albany NY, asserts that the government does not have the authority to use public funds to save private industry.
The suit was filed by constitutional activist Robert Shultz. Shultz is the chairman of the US constitutional watchdog group We The People (WTP). In the lawsuit Shultz claims that the move to bailout corporate entities who have demonstrated gross fiscal mismanagement is unconstitutional.
The lawsuit asserts that the commitment of public funds and credit for the direct benefit of privately owned AIG is an ultra vires action by the United States Government and Federal Reserve, i.e., beyond the limited legal authority granted by the Constitution. The lawsuit asks for a "show cause" hearing demanding that the Government produce evidence of its legal authority to commit public funds for such a purpose, as well as emergency and permanent injunctions halting the bailout transaction.
Beyond the Constitutional deficiencies, the bailout establishes a dangerous precedent enabling the Fed and/or Government to nationalize virtually any business or property within the United States without legal authority or congressional approval.
The defendants include the Federal Reserve System, Fed Chairman Ben Bernanki, the U.S. Treasury, Treasury Secretary Hank Paulson Jr. and the United States Government.
As the initial shock from the market turbulence starts to wane, taxpayers are full of questions about what the bailouts mean for them. Controversy is beginning to arise over the use of public funds to save a corporate entity. Some groups, like WTC, feel that asking the US taxpayer to pay the price for the fiscal mismanagement of corporate entities is fundamentally wrong.
This position has found some support in the United States government. Independent Senator from Vermont, Bernie Sanders, is calling for a surtax on the "very wealthy" to help pay for the bailouts. Sen, Sanders also draws direct attention to the fact that the wealthy families behind the struggling banking industry have seen a startling increase in personal wealth under President Bush, despite the fact that their corporate interests have crumbled.
Amid one of the worst financial crises in American history, Senator Bernie Sanders (I-Vt.) today laid out a four-part plan to cope with the collapse of financial institutions and avoid future failures of businesses too big to fail.First, Sanders proposed a surtax on the very wealthy to pay for bailouts of Fannie Mae, Freddie Mac and American International Group.
The wealthiest 400 families in America saw an increase in their wealth of $670 billion since President Bush has been in office. They have seen extraordinary benefits under Bush's reckless economic policies. The middle class, whose standard of living has declined, should not be paying for these bailouts. Rather, we need an emergency surtax on those at the very top in order to pay for any losses the federal government suffers as a result of necessary efforts to shore up the economy, Sanders said.
Second, he called for stronger oversight of financial institutions, This Congress needs to put an end to the radical deregulation that we have seen under President Bush and even before him. We need to put the safety walls back up in the financial services sector. We need to regulate the electronic energy markets to end speculation in oil futures.
Third, he said giant businesses like Bank of America should be broken up so no company in the future could bring the American economy down with it. Said Sanders, This country can no longer afford companies that are too big to fail. If a company is so large that its failure would cause systemic harm to our economy, if it is too big to fail, then it is too big to exist.
Fourth, he called for an immediate economic stimulus package which would put people back to rebuilding our crumbling infrastructure, and moving us to energy efficiency and sustainable energy.
As taxpayer awareness of the financial situation deepens, dissent over the government bailouts could increase. However, supporters of the plan state that without government intervention the entire economy could implode, which would hurt the average taxpayer most of all.
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Rhonda J Mangus
North Tonawanda, New York, United States
Most RecentMost Recommended Comments (14)
at 10:29 on September 19th, 2008
Tina Kells, I like this story. It's good stuff. "AIG bailout, taxpayer...", Ilike to hear the "green economy" in the last chapter: Germany makes $10bn export renewables in 5Y $100bn
Fourth, he called for an immediate economic stimulus package which would put people back to rebuilding our crumbling infrastructure, and moving us to energy efficiency and sustainable energy.........;Green economy makes real money
at 12:54 on September 19th, 2008
Tina Kells, I like this story. It's good stuff. imho, these reforms are better than the current system, but don't go far enough. The monetary system is part of the commons, like the the electoral process, air and water; it should not be privatized. The Federal Reserve is secretive and unnaccountable, privately owned and controlled, and the dollar has declined by more than 90% since the Fed Act was passed in 1913. The Constitution authorizes Congress to coin money; there is no reason for that power to be outsourced at all, let alone unnaccountably and untransparently, to corrupt private parties for their short-sighted and self-serving interests. Money should be managed by transparent public institutions for the public's interest, it should be owned and controlled by the People- and so should the political process, energy, water and air, etc.
at 12:55 on September 19th, 2008
I'd be interested in hearing the government lawyers' arguments attempting to explain the authority "our" government has to bailout private sectors with "our" public monies. People in private industry who take more risk than they should have should be allowed to pay the consequences.
at 15:03 on September 19th, 2008
I like that song, "Never Too Late" by Three Days Grace
at 03:43 on September 21st, 2008
We simply cannot keep allowing the Government to throw away our money on feeble plans that only further destroy the value of our money!It is,after all,only a game to these people who are so far removed from reality that it sickens me.For example:Nancy Pelosi and her hord of democratic half-wits have proposed a bill to allow off-shore drilling,only if it`s done at a location where very little oil exists,while making the "oil rich" locations,off limits!They want it to fail!Meanwhile,"Fancy Nancy"is all for pushing another stimulus package through so people can afford heating oil!What kinda freak is she?The hypocritical kind!Hey Nancy,take that 50 billion and build us a decent border fence and start deporting this massive strain on our healthcare system and free up some jobs.Illegal immigrants take an estimated 40 billion dollars per year out of the American economy and our government does nothing!Does this kind of irresponsibility really need more of our money to throw away so these pricks won`t have to give up their Limo`s and cavier?Enough is enough!!!!!!!!!!!
at 23:30 on September 22nd, 2008
Corporate welfare a.k.a. bailouts is to help them foreclose on those who have loans with AIG a.k.a. American General Finance. My home, according to AIG is now appraised 45% lower than 2006...wrong. This is referred to as Fraudulent Inducement. Fraudulent appraisals. Place me on as a Plaintiff on the lawsuit please.
at 12:51 on September 25th, 2008
Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} I received an interesting email - called the Birk Economic Recovery Plan -
It works for my family...
I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a 'We Deserve It Dividend'. To make the math simple, let's assume there are 200,000,000 bon-a-fide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair
stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billon
that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a
'We Deserve It Dividend'. Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?
-Pay off your mortgage - housing crisis solved.
-Repay college loans - what a great boost to new grads
-Put away money for college - it'll be there
-Save in a bank - create money to loan to entrepreneurs.
-Buy a new car - create jobs
-Invest in the market - capital drives growth
-Pay for your parent's medical insurance – health care improves
-Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ('vote buy' ) economic incentive that is being proposed by one of our candidates for President. If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+! As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can 'never work.' But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion 'We Deserve It Dividend' more than I do the geniuses at AIG or in Washington DC!!
at 07:19 on October 1st, 2008
What do I have to do to stop this. This is a travesty. We need to do something now. Bush is speeding this process to avoid opposition. We need to go to Washington today. Please help me....Please help you! We can't let Bush bankrupt the government. When the Government goes belly up, so does our freedom. The government will be forced to kneel before private power. PPLLLEEEAAASSEE!!!! Somebody help. Stop Bush! The war is near, & the US is broke! I'm not messin around people. This is as serious as it gets! This country doesn't even have 700 billion.
at 16:40 on October 10th, 2008
American General Finance put our home which we had been living in for 20 years into foreclosure five years ago. We were 2 months away from being auctioned off, and we miraculously were able to save it, but American General was $24,000 richer. There was no offer from them to help us stay here, they jumped into throwing us into foreclosure the first chance they got. For five years we have had no late payments on anything so it's obvious we could do it. They are money hungry, greedy loan sharks, and the last company that should have been bailed out. We now owe more on our house than when we bought it 25 years ago, and they are being treated to luxury spas on the peoples tax dollars. Makes my stomach turn. They commited mortgage fraud against thousands and got away with it and there was no help for any of us who suffered at there hands, beleive me we looked. No Government bailout for any of the tax payers that they stole houses from, and we are facing a 30 year loan on a house we have lived in for 25 years that started out as a 30 year loan. Where's the fairness in that? I consider my family one of the lucky ones that we still have our house after they took our loan over. Good luck to any lawsuits or ever seeing a penny from these vultures.
at 16:37 on October 11th, 2008
Does anyone know how to be added to the Plaintiff list for the AIG lawsuit?
Thank you in advance for any guidance.
Regards,
C
at 18:01 on November 16th, 2008
AIG a.k.a. American General Finance has obviously given risky high interest loans. They were the only co. in AZ that would refinance my very nice 16 x 80 on 2.5 acres; a decision I deeply regret.
Had I not refinanced but instead listened to my well-informed friend about the bubble that was to burst, I would have been in decent shape as oppossed to upside down. Our "elected public officials" appear to have no control over the situation. Sometimes I listen to Alex Jones www.infowars.com
If 50% of what Alex Jones reports and opines is correct, we have a hell of a storm ahead and are witnessing only the beginning.
I have tried to hang on, but my situation is out of my hands now. I am prepared to live in an RV again in the future unless some very good luck comes my way. Whatever...Time will tell all. I am preparing as best as possible for more tough times and hoping for better times.
at 16:12 on December 22nd, 2008
On Sunday December 21, 2008, my fence was served a NOTICE OF TRUSTEE SALE by Scottsdale Arizona Douglas Drury, Esq. who represents AIG a.k.a American General Finance.
Although I am in compliance with the forebearance agreement, they did this, in my opinion, to harass me. It caused me to experience elevated blood pressure to 167/96.
I have 14 disabilities, including heart damage. This is how this company treats people. The way I see it is the Federal Reserve Bank loaned them $150 billion to help this corporationa steal peoples homes in the midst of an upcoming depression.
For some truth, listen to Alex Jones, www.infowars.com
The propoganda from our governemnt and television have brainwashed the masses.
"I am mad as hell and I am not going to take it anymore!"
at 00:45 on December 29th, 2008
The Americans Governments done so many people and countries around the world so much evils now it is time's the Almighty make America pay for what she did/done and still doing. Karma indeed is a bitch and America should know this what come's around goes around and whatever goes up must come down and America you were up now down she goes. Now, thats reality.
at 12:19 on March 29th, 2009
AIG is AGF, American General Finance and American General Home Equity. They like to pretend they are different companies.
I just got a letter from their attorney, Douglas V. Drury, of Scottsdale, AZ, who inflated my mortgage balance $6000. That is mail fraud, State Bar violations and worthy of AG prosecution. I have reported it to them all.
We need a lawsuit, if there are any attorneys left with ethics, balls and no fear, call me 928-565-2300. If not, lets start this revolution against the bankers and show them what Americans are made of. Are you afraid to die? Not me. We will all die. I will be happy to die fighting for freedom!!! Come to my house and I will Bar-B-Que you fascist pigs and feed you to my dogs.
Grandpa Buccheri would have gutted you like a pig to be eaten by alley cats.