Checks and Balances

[Germ]

http://money.cnn.com/2009/06/08/news...ion=2009060816

This is going to get ugly, but I happen to agree with the High Court did today.

[jeepkid]

Aren't you glad you've got Obamalamadingdong in the White House??[:'(]

[James B]

[:'(], He is the last person on the planet that I would pick for the white house and the least qualified ever to end up there. this guy is the best thing that ever happened to Jimmy Carter as he should easily replace him on the dunce list.

[Doe Dumper]

I had hoped at some point someone would recognize that there is precedence and laws to follow on bankruptcies.

[kevin1]

Stop throwing taxpayer money down the rat holes of GM and Chrysler and let them solve their own problems through the normal market channels, bailing them out has clearly been a total waste of money and must stop immediately.

[Champlain Islander]

ORIGINAL: kevin1

Stop throwing taxpayer money down the rat holes of GM and Chrysler and let them solve their own problems through the normal market channels, bailing them out has clearly been a total waste of money and must stop immediately.

First the government floods them with bailout money to stop their tanking then prevents someone from buying them which wll cause them to tank. [:'(]

[Briman]

First the government floods them with bailout money to stop their tanking then prevents someone from buying them which wll cause them to tank.

Chrysler has been failing since the last time they were bailed out in 1979. The only thing that's kept them alive for the last 10 years was ownership by Daimler and then Cerebus, both corporations lost immense amounts of money on Chrysler.

[Champlain Islander]

Your point??? Looks like the only chance of survival for Chrysler is dependent upon being acquired by a third party. Now the government is stopping that at least temporarily through the Supreme Court. If the Fiat deal falls apart then Chrysler is liquidated which means nobody gets anything.

[Alsatian]

ORIGINAL: Champlain Islander

Your point??? Looks like the only chance of survival for Chrysler is dependent upon being acquired by a third party. Now the government is stopping that at least temporarily through the Supreme Court. If the Fiat deal falls apart then Chrysler is liquidated which means nobody gets anything.

CI: I don't get you there. The survival of Chrysler is not necessary for secured creditors to recover some value for their investment. The assets of Chrysler will be sold off, and the proceeds used to pay out to secured creditors. What Ginsberg appears to be doing is saying "Wait a minute, let's not throw out due process and long standing bankruptcy usage! Let's review the provisions of this bankruptcy." I applaud that. There is a procedure that is followed in bankruptcy -- it ought to be followed here as well as elsewhere. It appears this procedure may not have been followed.

Implicit in my comments is my view that the game here is not attaining the survival of Chrysler. I don't see how the survival of Chrysler is the primary objective or precisely how the survival of Chrysler is necessary to best secure the interests of the public and the creditors of Chrysler. Sure, Chrysler and its employees are interested in the survival of Chysler . . . but I don't work for Chrysler. They should have taken their survival seriously long in the past and taken prudent measures that were within their powers to secure their survival, if it were vital to their interests. It is not vital to my interests or our nation's interests. Maintaining order and consistent application of contract law IS in the vital interests of our nation. Ask yourself how the financial institutions are going to adjust to investing in major corporations going forwards when the bankruptcy rules are rewritten along lines of political expediency? I wouldn't want to be lending to these guys when I didn't think I would get a fair shake in recovering my money. I would make adjustments of my perceived risk, and that would tend to demand higher return/interest and/or maybe just place my money elsewhere.

[ipscshooter]

ORIGINAL: Champlain Islander

Your point??? Looks like the only chance of survival for Chrysler is dependent upon being acquired by a third party. Now the government is stopping that at least temporarily through the Supreme Court. If the Fiat deal falls apart then Chrysler is liquidated which means nobody gets anything.

Bankruptcy doesn't necessarily mean liquidated.