[Grampa Dave]

Americans, who buy bonds/corporate notes to support our economy, become the latest target/casualty in 0b0z0’s destruction of our system of capitalism.

http://www.freerepublic.com/focus/f-news/2268541/posts

Peter Schiff Report - June 8 2009 - Video Blog (Creditors legal contracts abolished)
youtube ^ | June 8 ,2009 | sickoflibs/peter schiff

Posted on Tuesday, June 09, 2009 10:22:43 PM by sickoflibs

“…Hopefully the Supreme Court will throw this whole thing out and uphold the rights of the creditors. We don’t want to have a precedent where the courts can simply throw out the rights of secured creditors. What the government is arguing in their brief is that the secured creditor’s interests don’t matter …because a real bankruptcy would have even MORE hardships for everyone else and the workers. We don’t want to have a system that says if you loan money to a company they don’t have to pay you back because other people will suffer in the process. Why would anyone one want to lend money to a company, particularly one in difficulty, if they couldn’t find a secure way to lend it? Not secure because they were afraid any type of security they had for their loans would be set aside in bankruptcy in favor of some special interest that has political clout?

The real irony is you had creditors who loaned money to Wall Street, to investment commercial banks who got completely bailed out.. …the government made all the creditors whole. Why does the government make some creditors whole and then go to a situation like Chrysler where creditors who are secured who have assets they could have sold to make themselves whole, now the government screws them?.Where the government basically steals their collateral from them? So where is the due process of law where you have favored individuals getting bailouts by the government and you have other individuals being denied due process and having collateral stolen from them by the government? All of this sends a clear message to anyone that would potentially loan money to Americans: ‘Don’t do it, don’t risk it. You might not get paid back because our courts are not going to enforce these contracts’. . Remember that the creditor here in the Chrysler is a pension fund for a state government. So if our supreme court is ready to screw our own citizens, our own state government employees;. Imagine how quickly they would set aside the rights of foreigner companies or investors. This is the wrong message to send” .

Peter then predicts correctly that the SCOTUS caves in to political pressure as they did today.

[BOBTHENAILER]

Sad to see the scotus caving on this. I had two friends who owned GM bonds and thus, a part of the royal screwjob, although very small. But it makes no difference, big, small, whatever, soon NO ONE will be backing anything in our economy, because, as you accurately portrayed it:

THERE IS NO MORE RULE OF LAW

[April Lexington]

Americans, who buy bonds/corporate notes to support our economy, become the latest target/casualty in 0b0z0’s destruction of our system of capitalism.

Its not just secured bonds. Think about the asset based lending industry. If security underlying bonds can be confiscated in Chapter 11 so can assets securing bank loans. Life just got WAY more expensive!

[SierraWasp]

I want you two to think of one sorta bright spot in all this crappola. City and County governments have been getting huge sales tax revenues offa auto malls and car dealers in general, to say nothing of gasoline taxes and sales taxes on those gasoline taxes in CA.

All the commie-libs in local government should be in a screaming out-rage at 0b0z0's flatulent folly about now!!!

Well, don'tcha think??? They're probably bawling about all their "crying unmet needs" right about now...