the U.S. government's manhandling of GM and Chrysler bondholders will ripple outward, striking not only companies and their creditors but the very basis for U.S. power and prosperity.
Quite a statement
Posted on 05/27/2009 7:30:48 PM PDT by Kaslin
The Law: Sure as the sun rises, the U.S. government's manhandling of GM and Chrysler bondholders will ripple outward, striking not only companies and their creditors but the very basis for U.S. power and prosperity.
This single act reverberated for years. Word got back to Europe that the word of this fledgling country was good, even with enemies. As a result, European capital to finance the great steamships, railroads and other engines of American growth flowed.
"The return of their funds became an important chapter in American finance because it showed that the government was willing to do business on an impartial basis, and that would influence future British investments for decades to come," wrote Charles R. Geisst in his 1979 "Wall Street: A History."
Scroll to 2009. What's good for General Motors is no longer what's good for America. GM and Chrysler faced restructuring in a last-ditch bid to avoid bankruptcy. But unlike 1811's British lenders, their bondholders have been treated like enemies.
(Excerpt) Read more at ibdeditorials.com ...
You can’t play Chicago politics on the big stage without someone at least noticing you’re breaking the law. Question is, will the law be upheld or do we take another step towards being a banana republic?
I don’t think this chapter is fully written. Something tells me there are going to be some monumental lawsuits and a lot of hardball played in court over this. These lawsuits are of such a huge size as to be appealed to the Supreme Court.
As usual, IBD gets it. Economic fascism also never works. Well, it does for looting a county’s wealth - all zero and the democrat socialists care about - but it wrecks the nation. Oh, wait, yet another “win” for zero and the donks...
That's the plan.
the U.S. government's manhandling of GM and Chrysler bondholders will ripple outward, striking not only companies and their creditors but the very basis for U.S. power and prosperity.
Quite a statement
This is a very bad precedent for investors within this country, all to save Democrat jobs.
IBD and the UK Telegraph are the best newspapers in the world. The other newspapers are dishonest and corrupt jokes.
The WSJ and Forbes have become crap. One of Obama’s closest advisors gives lousy investment advice in Forbes. I cancelled WSJ and Forbes.
Why would any capital come to America?
I had to do a paper on foreign investment 25 years ago on foreign investment. I was given Zimbabwe! At the time everyone was fawning over moderate Mugabe. I say forget investing a penny. He turned out to be the nightmare I expected him to be.
ping.
Oh, we're already there.
Without contract law, the US IS Zimbabwe.
You have put your finger on the vital nerve: Without contract law, capitalism is dead. And the traitors in Washington know exactly what they are doing to kill it off.
Yeah - I spent about 25 years studying why the US system works in the US, but not so much elsewhere.
Contract law. That is all it takes.
And zero has abrogated it.
[You can’t play Chicago politics on the big stage without someone at least noticing you’re breaking the law.]
I was just talking with a trade delegation from Russian Siberia today. First thing on the table was establishing trust.
Insightful article bump.
Ping
Obama’s a lawyer. He knows contract law. He’s ignoring it.
The push to change terms of mortgages after the fact, reneging on the AIG employment contracts, and now the GM mess. It’s just the beginning.
I fear that you are correct.
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