As I wrote in my most recent post, "Killing Chrysler," bankruptcy might be the best thing for debt holders. While I generally don't care for bankruptcy, it does happen, and the rights of both parties should be respected by law. However, with President Teleprompter and his union goons in office, what should be and are vary greatly.
The Wall Street Journal reports indirectly, in a piece titled, "Chrysler Pushed Into Fiat's Arms" (May 1, 2009), that TARP-backed banks were pressured to encourage other debt holders to accept the government's deal. People who switched to Allstate saved an average of $396 per year. Quote Now!
What becomes clear, as the story reports:
"The administration had repeatedly said it has no plans to run Chrysler or dictate its business plans. ... The pact allows the government and UAW to reorganize the company's top management."
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Interesting, President Teleprompter wants to reward the UAW goons with control over the third largest automaker, and then tell them what cars to make. Sounds crazy? Also from the article:
"Moreover, the government said it would use the agreement with Fiat and Chrysler to encourage fuel-efficient cars."
Didn't it seem strange to anybody that the President of the United States was announcing the bankruptcy of a publicly traded company? Have you wondered why the federal government is getting its nose and your money into these businesses and not just letting them fail naturally, under existing bankruptcy law?
Clearly, this is about political power, and the socializing of the U.S economy. Consider how President Teleprompter speaks about the debt holders seeking enforcement of their contractual rights and relief from the courts:
They "decided to hold out for the prospect of an unjustified, taxpayer-funded bailout," Mr. Obama charged. Were that not enough demonization, Cogressman for Life, Rep. Dingell (D. MI) calls the debt holders, "...'rogue hedge fund' and 'vultures' and said in a statement that they 'will now be dealt with accordingly in court.'
Wow, name calling, threats of court? This is just business, right? Not really, as this is really just a push to control as much industry as possible. Guess what GM, you're next!
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In less than 100 days, the federal government now owns 85% of one of the world's top insurance companies (AIG), and has its claws in the top banks via TARP. GM is next, and after that, health care. If this isn't stirring just a bit of worry in your mind, it better!!
My sincerest hope is that when the debt holders get to court, they plead their case, and the judge pays the secured debt holders their due. Further, I hope the judge pays each aggrieved party all they are entitled to under the law, and leaves President Teleprompter's dreams of industrial domination in the dirt.