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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (1242)	9/30/2007 10:50:52 AM
From: zamboz	Read Replies (1) \| Respond to of 71412

if you ARE bankrupt, then you just can't pay, period. e.g., owned by the company store, a serf, a sharecropper or a indentured servant. not middle class.

To: Real Man who wrote (1242)	9/30/2007 11:24:37 AM
From: RockyBalboa	Respond to of 71412

For the avoidance of doubt, the motivation was not making the broke unbroke in a hunch. I know as well as you do that this is wishful thinking and would benefit the reckless to the detriment of honest people (this is the same reasoning why a general mortgage bailout does no good). Thats what the old law also didnt achieve. But here it is more about the fine print, or operational issues of Ch.11 proceedings: as seen from Enron, Worldcom, etc.. a bk proceeding can take years, much too long for any counterparty, in general. Of course banks were the first and loudest to demand, we need special treatment for our open contracts and assets underlying those contracts, as those can expire and their realisable value is time dependent. They overreached and the new bk laws gave rise to cherry picking assets for self enrichment. Collateral damage. The new law rather established that a certain class of counterparties, banks and brokers will receive preferential treatment and normal trade counterparties suppliers, consultants etc. wont. Period. We will see how this works: Bankruptcies of AHM, New Century, Sentinel and many others will show with how little residual assets a bankruptcy court has to do. Most of the balance sheet is excised beforehand.