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.
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.
2 comments:
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.
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.
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