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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (35703)	6/2/2009 11:09:05 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Garbage in, garbage out in that particular 'study'. (I highly doubt that they have demonstrated anything... except possibly that they don't yet have a handle on the confounding effects, such as the Dollar's retreat in the direction of it's long-term baseline, after the artificial 'flight to safety' panic boost to the Dollar last Fall.) Regarding GM, (where, by the way, the bonds in question are not secured....) As one blogger posted: Priority structures are mostly rigid in Chapter 7, but not in Chapter 11 bankruptcies. How often are priority structures violated? In one study, reported in chapter 16 of the book "Corporate Bankruptcy: Economic and Legal Perspectives (Paperback) by Jagdeep S. Bhandari (Editor), Lawrence A. Weiss (Editor)", strict priority of claims was violated in 78% of the sample cases. Even secured creditors had their priority violated in 8 % of the cases. Bankruptcy law provides a considerable degree of latitude to the presiding judge. The process is about making deals under the gun. The bankruptcy was filed in New York. My guess is that the results of a bankruptcy filing are dependent on where the filing takes place. The practice of law is a study in the systematic application of power.