Posted on 04/23/2009 4:30:28 PM PDT by An Old Man
I don't know the exact mechanism, but they are a super-senior lender, and any lender who is defaulted can initiate the process. I think that Treasury may be skipping a couple of steps, though.
Please explain how you think that their actions are bad.
Geithner filing bankruptcy on Chrysler?
The way this is written is nonsensical?
I believe the pensions have some sort of government insurance, but the pensioners loose a lot, maybe 50% of their pension.
Not certain what you mean by that question but non-mgt. salary employees are union too..........
Sure! The people that will be affected most are the Moochers and Looters who work for the government. Once they find out that their pensions are "Gone with the Wind". All hell will break loose. Think acorn on steroids.
". . . whose members’ (UAW)pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, . . .
Looks like another payback by Obama to his union buddies.
Every other company that went bankrupt in recent years had to turn their pensions over to the Pension Benefits Guararanty Corporation (a government function) that gave retirees only a fraction of the benefits they have earned.
It looks like the UAW guys will be able to avoid that thanks to Obama's boys who will give them a runaround to protect their pensions and benefits while everyone else loses theirs.
They are the forgotten man here.
Exactly how does the bankruptcy law allow a side deal between the US gov (apparently now the owner) and the UAW? Won’t the bankruptcy court ignore any such deal and, you know, apply the law?
Ping to the linked post above
That is my question too. The bondholders have priority, I thought. Although the UAW is a bondholder, but they were offered 20 cents on the dollar at last “offer” from 0’s group. How are they in the middle of this anyway?
Is the president above the law now?
Other than expressing my opinion, I'm a passive observer.
-- If you want to git yer britches in a wad, follow up on [Pacific Grove California Explores Bankruptcy Over Pension Issues] --
Again, an entirely predictable eventuality. The only mysteries being "how" and "when."
Not that I don't feel bad about it. I feel awful. What the "trustees" of public trust have done is unconscionable.
If they made quid pro quo threats against the company to exercise authority they don't legally have, isn't that abuse of authority & exortion?
Sure looks like it-- I'm really wondering why no private parties (bondholders, stockholders, etc.) haven't challenged Geithner's actions on legal grounds. My impression is all the big company execs are a) petrified they'll get the special Geithner/Cuomo/Spitzer legalized extortion treatment; or b) salivating at the opportunity to get free money and become corrupt partners with Obama's socialist corporatism (like GE's 'green' initiative to milk the taxpayer for boondoggle 'green' technologies).
I wonder if all these lying thieves realize that the burning sensation on their necks is the intimatin of the nooses they'll receive if (as is likely) this whole scam blows up in their faces?
FASCISM
It’s what they voted for....
Timmy should be put in “timeout!”
Well....
You get it. The rest of the public seems to not give a cuss.
“Pacific Grove California Explores Bankruptcy Over Pension Issues”
This is the net coming defined-benefit bomb...
Public Pensions.
I used to live in Pacific Grove. I always wondered how a TINY town like that could afford the HUGE promises they were making in the 80’s.
"US Treasury now in the business of filing bankruptcy for corporations."
Also US Treasury now in the business of protecting organized labor contracts and benefits at the cost of destroying one of our few remaning manufacturing businesses.
One of the purposes of bankruptcy is to enable the company to re-negotiate contracts and other legal obligations. What good is this bankruptcy if the organized labor costs are locked in? After all, these costs are the main reason the auto companies are heading for bankruptcy to begin with.
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