But no matter what the union status, this case stands for the proposition that common stock owners can pressure the government to step in and give them preference over preferred stock owners and bond holders in the event of a bankruptcy. Hence there is no more incentive to purchase bonds. Companies will have to resort to selling common stock to do long term financing thereby diluting the value of common stock and driving the market down. The value of preferred stock will likewise drop because there is no incentive to purchase it if it is not given "preferred" status.
This precedent will drive down the value of all stocks and all bonds. It is a perfect storm for a complete financial meltdown.
Somehow I think this is a planned action to make 401k's worthless so that the government can institute some government run retirement fund in addition to Social Security.
If Obama isn't the Anti-Christ, then he is Satan himself.
No wonder he can't produce that Birth Certificate. He was around before paper was invented.
We can at least stop him by getting the democrats out of the House and Senate in 2010. Stop the funding - stop the madness. Then we can go after all his miserable failures in 2012.
If we want to rid ourselves of a democrat House and Senate, we have to stop debating their issues. It let's them set the agenda! Instead of giving voters a choice between "yes for the left" or "no for the left", let's give them Conservatism as another choice. We've got to get Conservatism out in front for the entire world to see.
I think you are making a good point, but in this case it was the union that was given special treatment, especially their retiree's. The stock holders had the value of their shares diluted.
The unions are the problem. They kill a business. The only area where they thrive is in govt, because there productivity, competitiveness and cost are not considerations. That's why I was saying if you buy corp. bonds you have to check to be sure the business is not unionized. In the end a unionized business will not succeed when it has to compete against a non unionized business.
Collateralized or, asset based, lending took a big hit. Not from SCOTUS but from Barry and his little boys forcing the plan with total lack of respect for 6,000 of legal precident on secured lending. Read the Book of Proverbs where it talks about taking your neighbors cloak as collateral for a loan. Now, the unions get the cloak, the debtor walks free and the lender loses. Thanks Barry!