repeat, as often as necessary. 
Unions / DNCs' "friends" are the main
beneficiary of this Admin. "illegal actions".
Posted on 06/30/2009 3:09:58 PM PDT by RatherBiased.com
Bankruptcy experts Mark Roe and David Skeel, law professors at Harvard and the University of Pennsylvania, have written a paper assessing the Chrysler bankruptcy—very negatively. It hasn’t been published yet, but it’s available here to Social Science Research Network subscribers; I’m working off an emailed copy. [snip]
Roe and Skeel note that the bankruptcy judge didn’t use—or even mention—the ordinary requirements of creditor priority in § 1129 of the bankruptcy code. “The requirement in § 1129 (a)(8) tghat each class of creditors consent or receive full payment wasn’t used. A market test wasn’t used. There was no judicial valuation of the firm. Chrysler simply went through the motions of selling its principal assets to a newly formed entity controlled by its previous creditors.” The major creditors, as they point out, were banks that had taken TARP money and which therefore were in effect controlled—or bludgeoned—by the government. The result was that the unsecured retiree health plan fund got a promise of well over 50 cents on the dollar while secured creditors were getting 29 cents on the dollar. My additional gloss: property was transferred from those legally entitled to it to those who were political allies of the Obama administration. [snip]
The implications of the Chrysler bankruptcy as precedent are worrying. As Roe and Skeel note, “credit markets reacted negatively to the Chrysler reorganization process and results.” They quote Warren Buffett saying, “If we want to encourage lending in this country, we don’t want to say to somebody who lends and gets a secured position that the secured position doesn’t mean anything.”
(Excerpt) Read more at washingtonexaminer.com ...
Just imagine. Wow! Real life, in the real world. Things get over priced, greed comes in the workers, and people pull back and buy something else. IMMORAL.
So, will it be appealed?
How the Empire was Born
Once upon a time, before the death of the American Republic, a man named Chrysler went bankrupt, and his house was being sold at auction by the Sheriff.
The Republic was ruled by Law, and under that law, the Sheriff was required to sell the house to the highest bidder, and use the proceeds, first, to pay off the mortgage to the Bank of Retired Indiana Teachers and Policeman. Any remaining monies could then be used to pay the Maid, or any of Mr. Chryslers other outstanding debts.
But the Sheriff was a powerful man, if less than honest, and he was in bed with Mr. Chrysler’s Maid. He wanted to protect her, as she and her friends gave him great support, and kept him in office, through scandal after scandal.
So the Sheriff made a plan. He made a deal with his friend, the Assessor, to pay the Assessor $10M dollars, if the Assessor would value Mr. Chrysler’s house for pennies on the dollar. The catch was that the Assessor would only get paid, if the Maid was successful in buying the house for the discounted value that the Assessor established.
So the Assessor drafted a paper, claiming that the house was abandoned and rapidly falling apart, and thus was only worth about $2B. To prove this, he got some fake bids on the house from the Sheriff’s friends, for slightly less than this value.
At the same time, the Sheriff went to the bank of TARP, and claimed that Mr. Chrysler’s house was worth full value, about $30B. And he cosigned for a loan for the Maid, that she might buy Mr. Chrysler’s house. In order to do this, the Sheriff had to lie, and proclaim that the Maid was a bank – Mr. Chrysler’s mortgage company objected, but the Sheriff said, “I won. The Maid is a bank if I say she is.”
So the bank of TARP lent the Maid about $5B, that she might buy Mr. Chrysler’s house, and have a little slush money going forward.
And the Sheriff called an auction – instead of advertising it, however, he told only the maid when and where it would be.
And the Maid came to the auction, and as she was the only bidder, and thus the highest bidder, she bought Mr. Chrysler’s house for pennies on the dollar. The $2B value the Assessor had dishonestly established. And the Sheriff paid the Assessor his $10M fee.
And the evil Sheriff, instead of paying off the mortgage on Mr. Chrysler’s house, then paid the Maid’s back wages with the proceeds, and put a big chunk aside for the maid’s retirement fund.
And again he told the mortgage company, “I won.” And he paid them 29 cents on the dollar, instead of the full value of the loan, which they were entitled to under the law.
The mortgage company then cried, if we are not ruled by law – we are ruled by the evil Sheriff!
And that was the day the Republic died, and the Evil Empire was born.
The End.
Never ever ever again buy ANYTHING made by a (expletive deleted) UNION ! ! ! ! ! !
Yep. OBTW, I am open to correction if I misrepresented any of that.
It will be interesting to see if this illegal maneuver by obama and his henchmen will stand the test of time? If so, why should anyone invest if their legal rights are denied them, anytime the govermnet deemed necessary? Maybe, I pray tell, the case will make it to the World Court for proper adjudication, since it seems to me the USSC did not do their judicial responsibility in this case.
What form of government is it, where the executive breaks the law at will, and the legislature and judicial refuse to take not?
It is not a republic - republic comes from “Res Publica”, that thing of the people, a latin idiom for “the rule of law.”
So if it is not a republic, what is it?
All those multi million dollar salaries and benefits, and multi million dollar bonus packages and retirement packages and benefits for the CEOs who have gone but are still receiving, or their widows etc, helped push the bankruptcy along
We have a dictatorship.
Specifically, a fascist dictatorship, a’la Hitler.
I will no longer pretend that this is a free country - it is not.
In fact, why even have the term. Let's just call them "suckers".
Isn’t Obama establishing a dangerous precedent? If the rule of law doesn’t apply to him, how can it apply to anyone else? It would seem that he would have a lot to lose by the elimination of the rule of law. If the law is gone, anything goes. I wonder how long before this will be tested.
Welcome to Zimbabwe.
repeat, as often as necessary.
Unions / DNCs' "friends" are the main
beneficiary of this Admin. "illegal actions".
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