Looks like the Fed's nefarious goings-on during the Bank of America/Merrill Lynch merger are finally catching up with it. Here's to hoping this story doesn't get buried with freshly printed Federal Reserve Notes sent out to the editors at all the major media outlets.
Actually, it should have gone to the dogs, but didn't. I'm talking about Leona Helmsley's estate , of course. The contract clause of the Constitution says, "No State shall ... pass any ... Law impairing the Obligation of Contracts..." This means that private contracts cannot be changed by legislative edict. This clause is incredibly important because the willingness of private individuals to engage in profitable enterprise - which is the foundation of social welfare - crucially depends on their belief that they can realize a profit. In turn, their belief that they can realize a profit depends on their belief that they can hold parties to a contract liable to the terms in the contract. For example, lenders must have confidence that they can repossess the collateral for a loan if the loan is defaulted on. Otherwise, they will not take the risk of giving the loan in the first place. When lenders are too scared to lend, everyone is worse off. In the case of Leona Hel...
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