Skip to comments.Three Cheers for Chrysler's Dissident Creditors
Posted on 05/08/2009 6:07:45 AM PDT by SonOfDarkSkies
It was the biggest bankruptcy of an American automaker, as well as one of the biggest bankruptcies in U.S. history. Yet the stock market barely moved when Chrysler's expected bankruptcy was announced early last Thursday morning and moved significantly upward on Friday after the Chapter 11 bankruptcy filing. And since then it's just kept climbing.
There are many factors that move markets, but the Chrysler bankruptcy has been a dominant financial news story of late last week, so the simple fact that it hasn't dragged the market downward is significant. So what does the market reaction tell us? That while there is concern about the effects of a Chrysler bankruptcy, many investors viewed the moving of Chrysler's supervision to a federal bankruptcy court as the company's last best hope to escape from President Obama's planned nationalization with government and union ownership.
Despite Obama's chest-thumping about the bankruptcy process being "quick," "efficient" and a basic ratification of the administration's plan, nothing can be done now without the express approval of Judge Arthur Gonzalez of the federal bankruptcy court in New York's Southern District. And -- given the complexity and size of the case -- it probably won't be quick. It will take many months, perhaps years. But whatever the courts decide can't much worse than Obama's own plans for Chrysler and the treatment of its creditors that would have far-reaching negative effects on job and business growth.
(Excerpt) Read more at spectator.org ...
Very good article. Thanks for posting. BTTT!
Apparent, Obama didn't take the "basics of contract law" course at Harvard.
“Apparent, Obama didn’t take the “basics of contract law” course at Harvard.”
It also appears that economics, math and science are not among his strong suits.
I can’t wait for the investor lawsuits against those creditors that caved-in to Obammy.
Can you say "fiduciary duty"? I knew you could.
.....I can’t wait to see what Judge Arthur Gonzolez has to say about the White House’s behavior.....
I’m scared to death.
If he is the looter I think he is, he will side with the President. He will not have the balls to stand up to the whole Democrat party and end the wholesale change to a junta of radicals.
I think he will destroy the sanctity of contracts not blessed by the new radical overlords.
All animals are equal except pigs who are more equal.
......It also appears that economics, math and science are not among his strong suits......
Those traits are functions of the man. The exercise underway is to destroy the man. The lazy disadvantaged detritus of society must prevail.
......Can you say “fiduciary duty”? I knew you could. ....
Harharhar. His only duty is to maintain the progress of the looters. His fiduciary duty is to redistribute the wealth of the nation.
The O may consider it his duty, but it's well established Law that these fund managers have a legal obligation to protect their clients.
If they don't they can be held Civilly liable for breaching their fiduciary duty to their clients. In some cases criminal sanctions are possible.
.....but it’s well established Law that these fund managers have a legal obligation to protect their clients.....
:) yes of course. The fund managers must resist.
I was writing of the judge who must decide the issue. I fear he will follow the Obama precedent and make new law that brings about the desired looter outcome. Contracts be damned
I tend to agree with you, Bert...
The best way to destroy capitalism is to first destroy capital.
I just received an e-mail from a friend who said he heard on the radio that the other bondholders caved...anyone else hear anything abou this?