Below is my original question in Yahoo, government category. Following it, at end of page, is the answer I got.
Is it communism when government takes over free enterprise like this?
http://finance.yahoo.com/blogs/daily-ticker/eminent-domain-fix-housing-market-131011601.html
I believe most are thinking no way can this represent communism. But if you "take away" something from a private company just like Fidel Castro and the Soviets did, then that is communism. Communist did exactly that, given those assets (to call them something) to the ones they figured were the downtrodden by society in general. Actually it was promises like that which Fidel and other revolutionaries made even while up in the hills fighting the previous government.
So why is it different in this case? There is no way the U.S. can become communist?
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This was the answer. Is any of this true, or am I right and we're headed towards communism?
Nationalization has been practiced by all manner of governments throughout history. Most of them have not been communist. Amtrak is an example and Nixon was no communist.
Eminent domain is a concept that originated with Monarchies, long before communism was even invented. It stems from the fact that unless you are a sovereign, you can never really "own" land, just hold an estate in it. That is why its called "real estate."
US Bankruptcy law is provided for in the constitution. Art. 1 Sec. 8 Clause 4. It was created as we eliminated indentured servitude, debtors prisons and workhouses.
This story is just about a local attempt to enforce the spirit of the bankruptcy law, by writing down underwater loans, without a formal filing in federal court.

