Tag Archives: Judicial

Should Obama pick judges who favor Democrat special interest groups?

Yes, I know he calls it “empathy”. And by empathy he means twisting the law to benefit the people who voted for him. What you don’t believe me? Well, check out the evidence here about who Obama’s bailouts really benefit. Nice Deb even links to a story that questions whether the recent Chrysler dealership closures were made because the owners donated to Republican candidates.

Now, what kind of judges does someone like Obama need to install in order to back his authoritarian regime? Well, it has to be someone who will help him to punish the people who disagree with him. Someone who believes that there are good Americans (Democrats) and bad Americans (Republicans), and that the laws should apply differently to those different groups.

Let’s take a look at what my favorite two economists, Thomas Sowell and Walter Williams have to say about this.

Thomas Sowell

Thomas Sowell has a four-part series on Obama’s judicial philosophy.

In part one, Sowell asks what it means that Obama will pick judges who come from certain groups, and who believe in twisting the law to favor those groups.

That President Obama has made “empathy” with certain groups one of his criteria for choosing a Supreme Court nominee is a dangerous sign of how much further the Supreme Court may be pushed away from the rule of law and toward even more arbitrary judicial edicts to advance the agenda of the left and set it in legal concrete, immune from the democratic process.

Would you want to go into court to appear before a judge with “empathy” for groups A, B and C, if you were a member of groups X, Y or Z? Nothing could be further from the rule of law. That would be bad news, even in a traffic court, much less in a court that has the last word on your rights under the Constitution of the United States.

Appoint enough Supreme Court justices with “empathy” for particular groups and you would have, for all practical purposes, repealed the 14th Amendment, which guarantees “equal protection of the laws” for all Americans.

In part two, Sowell talks about Olive Wendell Holmes’ strict constructionist jurisprudence, which allowed citizens to undertake economic enterprises because they could predict how the law would be enforced.

Justice Holmes saw his job to be “to see that the game is played according to the rules whether I like them or not.”

That was because the law existed for the citizens, not for lawyers or judges, and the citizen had to know what the rules were, in order to obey them.

He said: “Men should know the rules by which the game is played. Doubt as to the value of some of those rules is no sufficient reason why they should not be followed by the courts.”

Legislators existed to change the law.

In part three, Sowell talks about why the judiciary must remain impartial as a check on the power of the legislative and executive branches.

Barack Obama’s vision of America is one in which a President of the United States can fire the head of General Motors, tell banks how to bank, control the medical system and take charge of all sorts of other activities for which neither he nor other politicians have any expertise or experience.The Constitution of the United States gives no president, nor the entire federal government, the authority to do such things. But spending trillions of dollars to bail out all sorts of companies buys the power to tell them how to operate.

Appointing judges to the federal courts– including the Supreme Court– who believe in expanding the powers of the federal government to make arbitrary decisions, choosing who will be winners and losers in the economy and in the society, is perfectly consistent with a vision of the world where self-confident and self-righteous elites rule according to their own notions, instead of merely governing under the restraints of the Constitution.

In part four, Sowell explains how big government socialists like Obama view the Constitution as an obstacle to be overcome.

Judicial expansion of federal power is not really new, even if the audacity with which that goal is being pursued may be unique. For more than a century, believers in bigger government have also been believers in having judges “interpret” the restraints of the Constitution out of existence.

They called this “a living Constitution.” But it has in fact been a dying Constitution, as its restraining provisions have been interpreted to mean less and less, so that the federal government can do more and more.

For example, the Constitution allows private property to be taken for “public use”– perhaps building a reservoir or a highway — if “just compensation” was paid. But that power was expanded by the Supreme Court in 2005 when it “interpreted” this to mean that private property could be taken for a “public purpose,” which could include almost anything for which politicians could come up with the right rhetoric.

Walter Williams

And Walter Williams writes about the dangers of empathy using last year’s Super Bowl as an example.

The Pittsburgh Steelers have won six Super Bowl titles, seven AFC championships and hosted 10 conference games. No other AFC or NFC team can match this record. By contrast, the Arizona Cardinals’ last championship victory was in 1947 when they were based in Chicago. In anyone’s book, this is a gross disparity. Should the referees have the empathy to understand what it’s like to be a perennial loser and what would you think of a referee whose decisions were guided by his empathy? Suppose a referee, in the name of compensatory justice, stringently applied pass interference or roughing the passer violations against the Steelers and less stringently against the Cardinals. Or, would you support a referee who refused to make offensive pass interference calls because he thought it was a silly rule? You’d probably remind him that the league makes the rules, not referees.

I’m betting that most people would agree that football justice requires that referees apply the rules blindly and independent of the records or any other characteristic of the two teams. Moreover, I believe that most people would agree that referees should evenly apply the rules of the games even if they personally disagreed with some of the rules.

But what if the Steelers had lost due to referee partiality? Well, presumably they would stop playing the game. And when enough small businesses get tired of being sued by special interest group plaintiffs, we will all be working for the government and that will be the end of our liberty.

Further study

Probably one of the greatest books ever written is Thomas Sowell’s “A Conflict of Visions”. Go out right now and buy it if you don’t have it, but be warned, it was a tough read for a software engineer like me, and my Dad also found it difficult when I gave it to him.

The Family Research Center evaluates Barack Obama’s first 100 days

Has Obama been a good President for Christians? Should Christians have voted for him? How well has he done at fulfilling his campaign promises to pro-life and pro-marriage social conservatives?

Watch this 7-minute video and see for yourself how prudent it was for Christians to put their faith in Obama’s promises. (H/T Gateway Pundit)

The Cloak Room lists the decisions of interest to Christians and social conservatives from the first 100 days of Obama’s regime.

I think we should judge presidential candidates on their record, not on their speeches or their appearance. How did Obama vote before his campaign started? Did the Christians who voted for Obama take the time to find out?

This video follows the story of the Democrats’ Hate Crime bill, which allows the government to imprison bloggers and Christians, (much like Iran’s theocratic government). My original post on Obama’s attempts to intimidate Chrysler’s creditors, thereby undermining the Constitution and the rule of law, is here. And it has now been corroborated over at Hot Air, here.

Regarding the intimidation of Chrysler’s creditors, Hot Air has a follow-up story from the Business Insider:

Creditors to Chrysler describe negotiations with the company and the Obama administration as “a farce,” saying the administration was bent on forcing their hands using hardball tactics and threats.

Conversations with administration officials left them expecting that they would be politically targeted, two participants in the negotiations said. …

The sources, who represent creditors to Chrysler, say were taken aback by the hardball tactics that the Obama administration employed to cajole them into acquiescing to plans to restructure Chrysler. One person said described the administration as the most shocking “end justifies the means” group they have ever encountered.  Another characterized Obama was “the most dangerous smooth talker on the planet- and I knew Kissinger.” Both were voters for Obama in the last election.

One participant in negotiations said that the administration’s tactic was to present what one described as a  “madman theory of the presidency” in which the President is someone to be feared because he was willing to do anything to get his way. The person said this threat was taken very seriously by his firm.

Hot Air comments:

Well, that’s certainly reassuring.  The man at the helm during one of the biggest economic crises in decades is a madman who will act in an unpredictable and irrational manner if he doesn’t get his way.  It sounds like they paint Obama as either a lunatic or a petulant child.

The “madman theory” of the Presidency? Is that what uninformed Christians who voted for Obama expected?

UPDATE: Ace has more here and here. (H/T Commenter ECM) And Hot Air (Ed Morrissey) has more here.

Barack Obama outlaws capitalism: threatens Chrysler’s non-TARP creditors

UPDATE: More details about this story and related stories of government intervention and wealth redistribution are here.

UPDATE: Welcome visitors from 4Simpsons! Thanks for the link!

This bombshell comes to me from my favorite commenter ECM.

Newsbusters is reporting that the White House is making threats to Chrysler’s creditors. Obama is living that these creditors allowed Chrysler to go bankrupt, because he would prefer to throw your money at his auto union worker constituents. What does it mean when the President of the United States threatens and coerces private investors?

  • Private property is abolished
  • The free market is abolished
  • The rule of law is abolished
  • The Constitution has been abolished
  • Private contracts are abolished
  • Capitalism is abolished

It means that socialism has come to the United States, just as the rest of the world is abandoning a failed system.We are now the equivalent of Zimbabwe and North Korea! Our run of liberty and prosperity is now OVER.

The source of the story is a radio interview conducted between 760 WJR’s radio host Frank Beckmann and Tom Lauria, the attorney representing Chrysler’s non-TARP creditors. I am reproducing the full transcript, because you need to read the whole thing, especially what I’ve bolded.


Beckmann: So what’s the matter with your vulture clients who are so greedy and selfish. Why won’t they go along with this?

Lauria: Well, they bought a contract that says that they get paid before anyone else does by Chrysler. And they have been told by the government who is in complete control of Chrysler, oddly enough, that despite their contractual right, they do not get paid before everyone else.

So they are standing on their rights, standing on the law, trying to defend in effect what is the Constitution of the United States, to make sure that they get what they’re entitled to for their investors.

Beckmann: Tom, let me make the argument against you in another way. We’ve heard the President say this, “I wouldn’t want to stand on their side.” Ron Gettelfinger says “Everyone else has made concessions. These people won’t; they’re greedy.” Why not take a concession that is being asked of everybody else and is being accepted by everybody else, including other hedge funds that had bought some of these bonds in Chrysler?

Lauria: Well that’s a great question, because let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent, and that’s a moving target.

I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House, and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.

Beckmann: Was that Perella Weinberg?

Lauria: That was Perella Weinberg.

Beckmann: All right.

Lauria: Now let me just tell you, to be clear, that we do not oppose the rehabilitation of Chrysler. We think it is vitally important that a company like Chrysler be protected to the extent that it can be within the framework of the law. I want to also say that we do not oppose the government backstopping or supporting the pensioneers and retirees and workers of Chrysler.

I actually think that in a troubled economic time like we’re in, that is an appropriate role for the government to perform. What we do oppose, however, is the abuse of the bankruptcy law to coerce first-lien lenders subsidize the rehabilitation of Chrysler or the backstop of the obligations to the pensioneers and retirees beyond what they will do voluntarily.

And just to be clear, these clients of mine have agreed to compromise 50% of their first-lien position to help support the rehabilitation of Chrysler — Contrary to what the President said yesterday in his new conference that “these people will not give to support the effort,” they have agreed to compromise 50% of what they’re owed to support the rehabilitation of Chrysler, despite the fact that they’re under no obligation whatsoever to do so.

That is what we stand for, and that is what we’re going to go to court to fight for.

Beckmann: OK, so they have offered to take 50 cents on the dollar. What are they being offered in return, and how does that compare to what other stakeholders, say the UAW, are going to be receiving?

Lauria: Here’s the troubling circumstance here. My clients bought a position in the Chrysler capital structure that entitles them to be paid “first dollars out.” That is, they’re to be paid 100 cents of what they’re owed before any junior creditors get a penny.

The government has offerend them 29 cents on the dollar, in the context of a restructuring of Chrysler that will send over $10 billion of value to junior claims. And when I say $10 (billion), that’s a floor. As we’re continuing to review the papers that Chrysler has filed in the bankruptcy court, that number may actually be more like $20 billion. So in other words, my clients, who are contractually entitled to 100 cents on the dollar, are being asked to take 29 cents on the dollar, while junior creditors are being offered somewhere between $10-$20 billion of value in the Chrysler rehabilitation.

Now I ask your listeners, what would they do if they were in our position?

Beckmann: Now Tom Lauria, let me cite a New York Times piece, I believe this was yesterday’s New York Times. No, it’s today’s as a matter of fact. And it says about the creditors who are standing firm: “Many of them bought Chrysler debt for about 30 cents on the dollar.” So what they’re saying is, “Look, they got a discount to begin with. They’re getting a good deal here. If they bought it for 30 and they’re being offered 29, that’s a great deal, better percentagewise than anybody else got.”

Lauria: Well, what people need to understand, first of all, that that is only speculation. There are people who bought this debt at par in my group, there are people who bought this at 70 cents, there are people who bought it at other prices. But what people really need to understand is that the people who bought this debt are pensioneers, teachers’ credit unions, personal retiree accounts, retirement plans, college endowments. That’s who my clients act as fiduciaries for. And they make all kinds of investments. And as you can imagine in this economy, there are numerous of those investments that have gone bad.

This was an investment that people made based on their assessment of the assets of Chrysler, and the view that this was a very secure, very safe investment. And they bought a contract that said they would get a very low rate of return in exchange for that high level of security. So the argument about what they paid for their investment really is irrelevant.

The fact of the matter is they bought a contract that said “you’re first in line, and in exchange for that you’re going to get a very low rate of return.” And I think everybody in this country should be concerned about the fact that the President of the United States, the executive office, is using its power to try to abrogate that contractual right. If the President will attack that contractual right, what right will it not attack?

Beckmann: You made a comment to me before we went on the air about the significance of this case as it relates to the Constitution. I’d like you to explain that to my audience.

Lauria: Well, look, there are kind of two aspects to that. The first is the right to property and the right to contract are kind of sacronsanct in this country. I think everybody understands that when you make a deal it’s supposed to be honored, and if it’s not honored you’re supposed to be able to get protection in court. And what is happening here, through the force of the United States government, and that’s what’s disturbing about this — I mean, private parties have contract disputes all the time — but for the United States Government to step in, the Executive Office of the United States Government, who under the Constitution is charged with enforcing the laws to step in and try to in effect break the laws, I think we should all be concerned about that. That is a constitutional issue.

OK, number one. Number two, realize that our Constitution is premised on the notion that there is a balance between the three branches of government: the executive, the legislature, and the judiciary.

And what’s going to be happening, in fact I’m going to have to go here, because I’m heading down to the bankruptcy court to start taking on this battle, which is of epic proportions. But what is going on here is you’ve got the executive branch coming into the judicial branch. And I think it is really important for the Constitution of the United States that people understand that the judicial branch can stand independent and interpret and apply the laws as it’s required to do under the Constitution in the face of intense pressure from the Executive branch to do otherwise.

Beckmann: Tom Lauria, really appreciate it. Final question, will Oppenheimer Funds and Stairway Capital, your other two clients in this, are they committed to standing firm? I’ve got to believe they’re facing the same pressure Perella Weinberg did before it changed its mind and said “Okay, we’ll go along now.”

Lauria: Well they are today, but the Executive Office hasn’t called them yet and made threats to them. So, maybe by tomorrow I won’t have any clients, and maybe this fight will be over.


Click the link below to see more commentary from National Review, Wall Street Journal and Hot Air.

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