Posted on 05/09/2009 11:44:57 PM PDT by BCrago66
The use of a sham sale of the sort the New Dealers thought they had forever eliminated will cause mischief in future bankruptcy cases.
The Obama administration has closely patterned itself on the famous opening year of President Franklin D. Roosevelt’s New Deal. But the plans the administration has rolled out for Chrysler and is now cheering on in the bankruptcy court would make a true New Dealer turn over in his grave.
In the early 20th century, large troubled corporations did not file for Chapter 11 like they do today. They used a process known as “equity receivership,” which involved an artificial “sale” of the company to a new entity set up by the debtor and the investment banks who represented its bondholders and stockholders. The new entity was the only bidder at the sale, and creditors who were unhappy with the terms of the reorganization had very little opportunity to interfere.
(Excerpt) Read more at american.com ...
But this Obama guy, he stands behind the people, the workers, the COMMUNITIES. He’s one of THEM.
Meanwhile, business as we know it be DAMNED!
Well that’s what taking the bailout gets ya. Ford is blissfully immune from this.
Mrs jimfree was craving a Saturn Sky for several years. Now she is fixed on the Mustang convertible. Yes, I helped influence the decision though I never bought a Ford in my life. (bought first car 35 years ago.)
That forces the New Chrysler to be successful before the big stake has any value. Otherwise, it's just a big pile of doo-doo, and another trip to the bailout throuth.
Until govt subsidized price controls choke them!
The stards are literally using our own rope!
I wonder how many Chryslers are being sold now...
Can we find a graph of sales for the last few months? I bet it is nose-diving. I was going to look at a Crossfire but they can forget it now.
I think I will go to a local dealer and rub it in too...
I predict that Chrysler will be just a memory in a year or less. Every thing government touches turns to Sh*t. Amen.
I’m on my second Lincoln Navigator and hope to buy my third in a year or so. My experience with Navigators has been excellent. Good luck.
I’m on my second Lincoln Navigator and hope to buy my third in a year or so. My experience with Navigators has been excellent. Good luck.
syn⋅di⋅cal⋅ism /ˈsɪndɪkəˌlɪzəm/ Show Spelled Pronunciation [sin-di-kuh-liz-uhm] –noun 1. a form or development of trade unionism, originating in France, that aims at the possession of the means of production and distribution, and ultimately at the control of society, by federated bodies of industrial workers, and that seeks to realize its purposes through general strikes, terrorism, sabotage, etc. 2. an economic system in which workers own and manage industry.
That's the term Ben Stein used on Saturday for our new form of government. Maybe Ben's a FReeper.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.