Wednesday, May 13, 2009
"Chrysler Bankruptcy Exposes Dirty Politics"
I don't think government action like this bodes well for America.
Government just doesn't belong in a publicly owned corporation's business...
Government just doesn't belong in a publicly owned corporation's business...
Declan McCullough writes about it at CBSnews.com:
"During its slide, Chrysler borrowed money from lenders and in return signed a contract promising that as so-called senior creditors, they'd get paid before anyone else if the company went under.
These creditors, by the way, represent something of a cross-section of America: the University of Kentucky, Kraft Foods' retirement fund, the Bill and Melinda Gates Foundation, pension funds, teachers' credit unions, and so on.
A normal bankruptcy filing would be straightforward. Senior creditors get paid 100 cents on the dollar. Everyone else gets in line.
But President Obama and his allies don't want that to happen. So they interfered on behalf of unions (the junior creditors) and publicly upbraided the senior creditors who were asserting their contractual rights and threatening to head to bankruptcy court."
