When the lobbying groups on Wall Street merge in opposition to a proposed activity, one must look closely at whether it is for greed or rational opposition.
The mortgage purchase plan proposed in San Bernardino County, California, has some merit. At the same time, our private property system would be destroyed if forced acquisition is available for the “public use” of the community. The real problem is when “public benefit” is not coterminous with Public Use.
By using eminent-domain powers, municipalities can forcefully buy private property at prices deemed to be fair if doing so serves a public purpose.
"We have very serious concerns and strong objection to the concept of using eminent domain to seize a mortgage for the purpose of restructuring it, no matter how meritorious the goal might be," Bentsen said Wednesday. "We think it raises the serious constitutional issues of a government entity overstepping its bounds."