President Barack Obama’s ramrodding of the Chrysler “bankruptcy” will not be blocked by the U.S. Supreme Court, as the Justices yesterday ruled that the proposed sale of the battered American automaker to Italian carmaker Fiat can move forward.
A case study in government intervention, manipulation and intimidation, Obama has steamrolled over the rights of debt-holders and local dealers to give his powerful union allies the lion’s share of the profit from this sale.
Never mind that Chrysler – under our old free market system – would have gone bankrupt and had its assets sold competitively six months ago.
Anyway, some of those debt-holders – three government pension funds from Indiana, specifically – tried to block the sale arguing that they were offered infinitely less favorable terms than those awarded to the United Auto Workers union retiree health care trust fund, which will own over two-thirds of the “new” Chrysler.
For a recap of the deal, check out this story in the Toledo Blade.
For a profile of the the lawyer who took on Chysler, the unions and Obama, check out this story in the Wall Street Journal.
By j potter June 10, 2009 at 10:41 am
In the future, any pension fund that buys a bond without private credit default protection is foolish.
By Rick June 11, 2009 at 2:13 pm
In the future….anybody that buys a bond backed by this administration is a damn fool….which is why there’s a giant sucking sound beginning to be heard as money goes overseas. Notice the administration has quieted down on off shore accounts, well when this gets bad enough and they need money…..Nothing is safe in the US…we don’t know where the administration will strike next. This is going to be better than a night at the local house of ill repute….yehawwwwwwwwwwwwwwwww