More than a tincture

Documents Confirm Treasury Bullied Banks

Why not? It was practice for bullying secured creditors at Chrysler and overturning contracts in California.

Tincture of Lawlessness

The Obama administration is bold. It also is careless regarding constitutional values and is acquiring a tincture of lawlessness.

…In February, California’s Democratic-controlled Legislature, faced with a $42 billion budget deficit, trimmed $74 million (1.4 percent) from one of the state’s fastest-growing programs, which provides care for low-income and incapacitated elderly people and which cost the state $5.42 billion last year. The Los Angeles Times reports that “loose oversight and bureaucratic inertia have allowed fraud to fester.”

But the Service Employees International Union collects nearly $5 million a month from 223,000 caregivers who are members. And the Obama administration has told California that unless the $74 million in cuts are rescinded, it will deny the state $6.8 billion in stimulus money.

…The SEIU says the cuts violate contracts negotiated with counties. California officials say the state required the contracts to contain clauses allowing pay to be reduced if state funding is.

Rule of law? Not so much.

Favored parties? In California and at Chrysler – unions. Our President didn’t describe the SEIU as “refusing to sacrifice like everyone else” and as wanting “to hold out for the prospect of an unjustified taxpayer-funded bailout.” That’s what he called Chrysler’s secured creditors.

Guess what will happen with GM.

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