Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (102915)	4/30/2009 2:39:18 PM
From: orkrious	14 Recommendations Read Replies (3) \| Respond to of 110194

From an email list: I just saw an Orwellian vision of the future.Prior to today,I wanted to give Obama slack.New President,tough inherited problems.Obama (not Chrysler) announced the filing of bankruptcy on CNBC.He attacked the 'small group of speculators' for forcing Chapter 11,putting the unpatriotic blame for the failure of a company that's been a failure for decades (they went bankrupt in the Carter era as well,which Obama wouldn't remember as a small child but I do since I arbed the deal) and basically stating that the selfishness of a few greedy Wall Street guys who lacked a sense of public responsibility had put 'the jobs and livelihoods of thousands of Chrysler employees,suppliers and dealers at risk'. More alarming,Obama assured the viewing public that this would be a very fast-track bankruptcy and would conclude successfully and in accord with the government's objectives within 30-60 days. > > > > OK,let's escape Obamaland for a moment and review the facts.Fully 30% of all claims on Chrysler objected to Obama's deal.A clear majority of the other 70% were either conflicted (representing taxpayer obligations or big banks like JPM in which the gov't is a major holder) or were getting as subordinated holders a MUCH BETTER DEAL than would be the normal case based on bankruptcy case law.The UAW does EXTREMELY WELL on this plan,despite having a workforce that has been overpaid for making crappy cars for decades,and more importantly being SUBORDINATED in their claims to the holders who are rightfully objecting.Meanwhile it is the Sr Secured 30% block who would be royally screwed by this plan,and frankly if I were an LP of any of their funds and they'd gone along for 'patriotic' reasons,I'd put in an immediate redemption notice and then promptly sue their candy asses.Finally,the most chilling aspect had to be Obama's stern assurance that this would be a 'quickie bankruptcy'.Note to Obama,I was arbing the Penn Central bankruptcy when you were still a kid on the Chicago playgrounds.This is a contested filing,and contested Ch. 11 proceedings are ALWAYS lengthy affairs,normally taking several years.Unless there has been a clandestine change in the US Constitution which clearly delineates a separation of powers among the Executive,Legislative,and Judicial branches,this assertion is an abominable outrage and a clear attempt to intimidate judicial process.As a legal scholar,Obama would also know that Marbury v. Madison remains the precedent (going back to the 18th century) wherein the Judicial branch is the ultimate arbiter of American laws,NOT the Executive branch (hence,Judge John Sirica was able to bring down Pres. Nixon despite his specious 'equal powers' argument of Executive privilege used to oppose the turnover of sensitive White House documents). > > > > Obama showed his true self tonight,a petulant narcissist who expects to get his way and will use the 'bully pulpit' to achieve his ends,however ill-conceived.The fate of investor confidence now hangs in the balance.If Obama gets what he's convinced is 'right for America',foreign (and many domestic) investors can be expected to flee US shores faster than Secretariat out of the starting gate.People who truly care about the USA will yearn that a magistrate with the backbone of Sirica will hear this bankruptcy. > >