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To: Revel

Look at the GM bankruptcy - about 800 years of economic law was upended whereby bondholders were stiffed and got nothing. “Normally”, in a bankruptcy, bondholders are senior and get paid first, before anyone else.

My guess is that were things to get really dicey, foreign creditors will/are get paid first. If the problem was just limited to social security, that would be another matter but when taken in aggregate the fiscal problems look pretty bad. Trillion dollar deficits, state and local governments insolvent, manufacturing jobs long ago gutted and shipped offshore, etc etc, it’s a long list of horrors.

Mencken had it right a hundred years ago - “Elections are advance auctions of stolen goods.”


24 posted on 04/28/2012 5:36:57 PM PDT by Freedom4US
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To: Freedom4US
Look at the GM bankruptcy - about 800 years of economic law was upended whereby bondholders were stiffed and got nothing. “Normally”, in a bankruptcy, bondholders are senior and get paid first, before anyone else.

Yes, how can that be allowed to stand?

What's the latest on that, are there mega civil suits and why not?

25 posted on 04/28/2012 5:44:48 PM PDT by ROCKLOBSTER (Celebrate Republicans Freed the Slaves Month.)
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