Wednesday, July 8, 2009

Government Motors

When will we learn?

GM -- Government Motors.

Bankruptcy settlement in four weeks, stock holders at the end of the line.

We should be asking: Who has that kind of power and how did they get it?


Rick McQueen said...

Don't forget about the bondholders, those unfortunate folks that were operating under the rules (as they existed B.O.-before Obama). Now, this bankruptcy judge, under fear no doubt of being ousted by this administration, has allowed this re-org plan to proceed. This is unconstitutional - protected by the 5th amendment, the contract evidenced by their bond, and generally accepted common bankruptcy law. Supreme Court dodged on this one - Ginsberg issued stay, then the court refused cert.

Between this precedent and the coming hyper-inflation, corporate bonds will become extinct.

Shane Coley said...

Thanks Rick!

I was actually thinking of bond holders when I wrote stock holders. The bond holders actually had more dollars in than the unions and came away with a smaller percentage of the company, after receiving assurances of security before purchasing the bonds...

Yes - extinct. Our markets will suffer great harm because of this pillaging and disregard for the rule of law.