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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (15212)	11/9/2004 10:53:29 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 116555

That's another great example of the way Profits are Privatized and Losses are Socialized in America. No Airline in Britain or Australia could escape their pension obligations in Bankruptcy Court. Once stockholders, bond holders and lenders have lost 100% - then it's possible pension beneficiaries might settle for less. This is exactly what occurred when Ansett Airlines filed bankruptcy and went out of business. America is the only country whose law is based on English Common Law that permits companies to file bankruptcy and for company board members to always escape liability. Insolvent companies face review by bankruptcy court judges who normally rescind past executive bonuses and the proceeds of stock options exercised and sold. False or misleading statements or transactions with companies affiliated with board members bring about larger judgments against the personal assets of board members of failed firms. In a recent bankruptcy of One-Tel James Packer, son of one of Australia's richest men Kerry Packer, had to make good on obligations to the employees out of his own pocket, up to the extent of his profits from his stock sales. .