Supreme Court Issues Ruling On Chrysler
Breaking News:
The United States Supreme Court will NOT take the case to the full court for open hearings. The following is the Supreme Court order released moments ago.
It looks as if the ‘rule of law’ has been considered a ‘non issue’. This is very dangerous going forward for other companies who need or want to sell bonds for the purpose of raising capital.
From a personal point of view I am very disappointed that the Supreme Court has made this decision.
source: SCOUTS
More on this topic
(What's this?)
Chrysler Alleged to Have Acted in Bad Faith in Dealer Closings
(naked capitalism, 5/23/09)
Chrysler Planning Quick Bankruptcy Exit by May 22
(Money Morning, 5/4/09)
Chrysler Bankruptcy: Death Threats and Illegal Sales
(Shocked Investor, 5/4/09)
Is the US first in line to be repaid? Does the US own Majority of GM?
If so, is it the US passing it’s slice of GM to the workers?
i.e. no repayment of loan.
Nothing very shocking in this Court decision.
The Justices have shown that in the US case law, the presence of “irreparable harm” and that the interests of a specific party had to give way to the interests of the public at large.
In this case, of course, there is no “irreparable harm” in selling the Chrysler assets to Fiat, on the contrary.
Bondholders have lost? Too bad. The American investor will have to learn to think a bit more about the Common good.
It seems our Supreme Court can’t be counted on to follow the rule of law.
If by “common good”,’free mind’ is referring to the United Auto Worker, well I guess you have a point. This is a disastrous day in American history and just another in a long, long line of wealth redistribution moves by socialists. Dump your bonds! Dump your stocks! The free market sky just fell.
I guess we found out what “spreading the wealth around” means. Arbitrarily taking secured creditors funds and handing it over to the UAW is only the begining.
Pit Obama against Russia and China and lets see who wins? I seriously doubt Russia, China or any country will buy U.S. bond when they realize that rule of law does not apply in our country and the supreme court will just standby and let the government do whatever they want. It is a sad day indeed in United States. Who will trust us to repay our debt? I wouldn’t. Going forward, we will see which country will have faith in our country? Shortsighted indeed, obama is supposed to be a constitutional scholar but I guess he just doesn’t care or he didn’t hear anything at all while he was in the classroom. As for those of us who owe banks mortgage debt, wouldn’t it be great if we get other people to lend us money and lets put their lien over the banks when we file for bankruptcy.