When GM went bankrupt, were the bond-holders protected?
If State’s bankruptcy ever seems like it makes sense, reflect for a moment on who will divide the spoils.
There's the rub. In the GM bankruptcy many bond holders saw their life savings wiped out when the Court blatantly violated the law and gave their assets to the Unions thus rewarding the greed of the very institution which drove GM into Bankruptcy in the first place. Anyone think allowing State's into Bky court would be much different.
Who would that be? The federal government seems to be the logical answer. Under what authority would it be done? On paper, the federal government is just a creation of sovereign states and a lesser entity than any one state. How's that gonna work?
What precedent is there for this? I can think of only Reconstruction. Lincoln set up a military dictatorship in the South.
Let's see Obama set up a military dictatorship in Illinois and California.
They would definitely deserve it.