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My point was that you shouldn't listen to a total screaming moron like Michelle Malkin for advice on what's legal or not.
Secured loans MUST be paid before unsecured loans. My understanding is the UAW would have preference in being paid back, countering bankruptcy law. A president should not be able to alter the arrangement of previously negotiated contracts.
Besides, the political games played by the administration to blame creditors for simply wanting their money back is silly. Bonds in a corporate giant like Chrysler are not "junk", "high yield", or whatever you else you want to call it. As a bondholder, I would expect to get paid back even if that mean the liquidation of the company.
LOL... yeah, maybe you guys are wealthy enough to have invested in a hedge fund... LOL... you guys are too ridiculous for words. I think real Chrysler shareholders would much rather have the company survive... do you know what these hedge funds want? They want the company sold off piece by piece because they will get a higher return than through the current plan. And all they have to do is yell "Unconstitutional" and you knee-jerk conservatives come running like lap dogs.
Actually alot of hedge fund financing comes from pension finds and insurance companies. So spare us the class warfare tripe.
What amazes me is people like you who excuse gov't officals blatantly ignoring established law & trying to take money from one group to give it to their CAMPAIGN CONTRIBUTORS. Corruption pure & simple.
Secured loans MUST be paid before unsecured loans. My understanding is the UAW would have preference in being paid back, countering bankruptcy law. A president should not be able to alter the arrangement of previously negotiated contracts.
Besides, the political games played by the administration to blame creditors for simply wanting their money back is silly. Bonds in a corporate giant like Chrysler are not "junk", "high yield", or whatever you else you want to call it. As a bondholder, I would expect to get paid back even if that mean the liquidation of the company.
You are correct, the UAW holds unsecured debt against Chrysler which would be paid after the secured creditors. People bought into the Chrysler company using secured debt as collateral, and due to that security, they accepted lower than unsecured interest rates. Giving the secured investors the boot, and trumping them with whats essentially 3rd or 4th in line is against bankruptcy laws. (along with basic contract law)
Obama cant be stupid enough to think that this would fly, but at least this way he can grand stand and proclaim he's for the unions and push blame on the courts for his illegal move. If he is stupid enough to not know this, then my golly he's surely to stupid to be president.
I see. Michelle Malkin - the woman who claims that imprisoning Japanese-Americans in WWII was a good idea - that's who you go to for commentary on what's legal today?
That explains a lot.
I guess you failed to read the attached brief in the second link? Or maybe failed to understand it?
Confirmation that obama and his band of merry thugs did indeed try to threaten and strongarm invested creditors into a bad deal.
Quote:
The sources, who represent creditors to Chrysler, say they were taken aback by the hardball tactics that the Obama administration employed to cajole them into acquiescing to plans to restructure Chrysler. One person described the administration as the most shocking "end justifies the means" group they have ever encountered. Another characterized Obama was "the most dangerous smooth talker on the planet- and I knew Kissinger." Both were voters for Obama in the last election.
One participant in negotiations said that the administration's tactic was to present what one described as a "madman theory of the presidency" in which the President is someone to be feared because he was willing to do anything to get his way. The person said this threat was taken very seriously by his firm.
Quote:
Not only do they not realize that their responsibilities do not include building business plans for private enterprises, but also don’t include assuming the role of Michael Corleone and acting like organized-crime thugs. Actually, the way the White House made Obama sound, maybe Sonny Corleone is a better analogy … or perhaps Fredo.
Is anyone really surprise? The thuggery of Chicago-style politics.
I see. Michelle Malkin - the woman who claims that imprisoning Japanese-Americans in WWII was a good idea - that's who you go to for commentary on what's legal today?
That explains a lot.
You gonna address the point made or just be the happy little fella you always are?
Does anyone know what happens to common stockholders in this situation? Do they still maintain their shares after bankruptcy? If not, why should the UAW get prefferential treatment over those that have invested in Crysler? 55% ownership after NO investment seems like a heck of a payback from the O administration.
Does anyone know what happens to common stockholders in this situation? Do they still maintain their shares after bankruptcy? If not, why should the UAW get prefferential treatment over those that have invested in Crysler? 55% ownership after NO investment seems like a heck of a payback from the O administration.
Because, silly, They give the democrats money. Duh!!
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