Libertarians for Ron Paul

Does the Constitution authorize the federal government to Bail-out Financial Institutions?

On Monday, September 29, the House of Representatives defeated the proposed $700 billion bail-out for banks and financial institutions. On Friday, October 3, the House passed the Bail-Out after 33 Democrats and 25 Republicans changed their vote. Many of the Democrats came out in support after personal appeals from Sen. Obama, and many of the Republicans voted Yes because Sen. McCain urged them to.

The only Republican Congressman from Arizona to vote Yes on Friday was Rep. John Shadegg. For many years, Rep. Shadegg has introduced bills to require that when a member of Congress proposes a new law, he must state the section of the Constitution that authorizes the federal government to act. Yet, when he voted Yes, Rep. Shadegg did not explain where in the Constitution the Federal Government is authorized to bail out banks. 

I have gone to Rep. Shadegg’s website, and used the email form to ask the Congressman this:

Congressman, you have repeatedly introduced a bill that would require members of Congress to state the Constitutional provision which authorizes the government to act, when they introduce any new legislation.

What is the Constitutional Provision that authorizes the federal government to spend $700,000,000,000 to bail out well-connected but otherwise incompetent financial managers at some of our largest banks and financial institutions?