Chrysler Creditors Now Out of Luck

Well, my optimism was short-lived that the constitutionality of the forced bankruptcy of Chrysler (and, impliedly, GM), and of the use of taxpayer dollars to bail out the auto industry would finally be considered by the Supreme Court.  The high Court late yesterday lifted the temporary stay of the Chrysler proceedings that had been issued on Monday by Justice Ruth Bader Ginsburg.  Now, all those bond holders and other creditors of Chrysler who stand to have their assets diminished because they are not among the creditors favored by the federal government, apparently have no recourse in the courts other than after the damage already has been done.

So much for the courts serving as an arena in which unconstitutional actions and spending by the federal government can be challenged and resolved.

27 comments Add your comment

bob

June 10th, 2009
10:42 am

Can you believe those greedy speculators that tried to block the sale. That is what Obama called the retired teachers that he just screwed in favor of his working union buddies. I don’t feel to bad for them because since they were in the teachers union the majority probably voted democrat. Live by the sword, die by the sword.

TooLazyHence2poor2paytaxes

June 10th, 2009
11:01 am

God help us.

Dave R.

June 10th, 2009
1:57 pm

It’s even scarier that they couldn’t find four sitting justices that disagreed with the Appeals Court ruling.

Joan

June 10th, 2009
2:50 pm

This is to be expected. I am sure many more major American corporations are looking longingly at countries where they will not be taxed to a competitive disadvantage. I am sure that if Obama has his way many of our corporations will relocate their headquarters in other countries, and probably their manufacturing facilities also. They will need to, in order to continue to exist.

Russell

June 10th, 2009
5:33 pm

What you should be most alarmed about is the brazen way that the FedGov destroyed contract law. Second alarm is FedGov’s demonization of bondholders and pension funds who tried to protect their assets, and then kicking them to the curb. If Washington can do this to GM and Chrysler without starting a revolution and armed insurrection, don’t think they’ll have any hesitation about “nationalizing” all pensions in a naked money grab. Your choices are state secession or expatriation.

Bobby Cox

June 10th, 2009
5:35 pm

The US Constitution does not apply to the Dimocrats. Obama is the biggest crook to ever occupy the White House.

joey

June 10th, 2009
6:23 pm

Bobby Cox,

Bush didn’t help the matter he opened the door for Obama. You want change vote Liberterian.

JimC

June 10th, 2009
6:43 pm

I hope all the morons who voted for Obama are enjoying the show.

Chuck

June 10th, 2009
7:06 pm

So what the country let a young “unqualified’ person “buy” now. the highest office.Are we not getting our “payback”

Michael H. Smith

June 11th, 2009
1:35 am

“So much for the courts serving as an arena in which unconstitutional actions and spending by the federal government can be challenged and resolved.”

And therein gives cause for the 912′ers and the Tea Party participants to rise up peaceably in making their decry known against “unconstitutional actions and spending by the federal government.”

We will never have genuine tax reform until we first have real spending reform, these issues are inseparable.
Now that healthcare is in Congressional play watch what happens to taxation and spending.

Want to talk about diminished assets? Want to talk about corporate and business taxes?

Want to talk about the march to socialism? Lack of protections found in the courts?

Funny how none of the proponents of increasing corporate and business taxes are ever willing to discuss where corporations and businesses get the money to pay those taxes that goes to finance all the social welfare programs?

So you really think Obumer cut taxes on 90% of the people in this country as he claims?

Who will benefit the most from this Supreme Court action Bob Barr?

It certainly is not we the taxpayers-consumers. We line-up behind the bond and common share holders in this scheme.

MBA

June 11th, 2009
7:04 am

Bankruptcy = you are no longer solvent. your debts are more than your assets. And you have this idiot writing this article saying the government forced chrysler into bankruptcy. So based on what the definition of bankruptcy is and the point of this article, the government forced chrysler to be no longer solvent. LOL I think they did that on their own with their business practices, but dummies will be dummies and say things like “Obama at his finest” LOL Dumb people at their finest!!!!

MBA

June 11th, 2009
7:12 am

Does anyone that post here actually know what the budget is for our country and how it breaks down? If you all did, 80% of the comments here would not exist. Do you know what percentage of the budget goes to “social-welfare” programs? I do… Do you know what percentage goes to defense(like the billions we give Israel, which is more than we use for social programs in our OWN country)? I do… So once you do your homework, you surely wont believe that corporate taxes are paying for welfare programs… because i dont. People please get informed and not at your local watering hole or KKK rallies.. LOL

Benn

June 11th, 2009
7:34 am

It’s So funny that every time the far right doesn’t get its way its crys “unconstitutional”! But when it forces it’s hand its called”legally justified by the law”.

Craig

June 11th, 2009
7:50 am

While bankruptcy was an inevitability, the “forced” part that Mr. Barr speaks of is correct in that contract/shareholder/bankruptcy laws were trampled on by the Obama administration. They placed secured creditors behind the unsecured creditors and gave the shareholders nothing while they gave the UAW 39% of the company. This takeover of the auto industry is nothing more than a payback to the unions.

booger

June 11th, 2009
11:07 am

This power grab by this administration is frightening. Czar number fourteen was named yesterday and not a peep from congress even though congress now have oversight of many areas where a czar now reigns. They completely usurped the Judiciaries role in the auto bankruptcies and not a peep.

The executive branch of the US government now runs auto companies, Insurance companies, by some accounts they now control up to 30% of the private capital in the country, and they are bankrupting the country. It is kind of like watching a movie and waiting for the hero to come along and save us. It is not a movie however.

Ginsburg fan

June 11th, 2009
11:42 am

Which justices voted for the deal? Name names!

Shelby

June 11th, 2009
2:35 pm

In the most recent election, I did not vote for Obama. At the same time, his masterful job of leading Chrysler to a new era is highly impressive, and Mr. Barr and others should think twice about their unfounded opposition.

America has been at a great disadvantage vs. other nations due to their recognition that a successful auto industry was central to their economic fabric–and our failure to do so. Finally, we have realized the same, and we will all be better off. And please don’t pretend that the fuzzy math of various Chrysler creditors gave just cause to any opposition; consistent analysis of the financial parameters in this case proved time and time again that their presumptions were far off base.

In the end, we got it right–and thank goodness we did.

John

June 11th, 2009
4:19 pm

They were out of luck anyways, and I don’t care what kind of bonds they are, they ARE STILL A RISK. None of those smalltimers would have gotten a dime from Chrysler, they had no assets. So a bunch of speculators who caused the crash last year got theirs and some jobs got saved. Liquidation wouldn’t work, even without the union, you could never compete with labor costs in Myanmar and China. It’s the best you could do from a crappy situation, which was made that way by your failed conservative economic policies, by the way. Got help from Clinton too, but who espoused crony capitalism and basically feudalism for thirty years every chance they got?

Michael H. Smith

June 11th, 2009
5:54 pm

You get inform Most Boneheaded American. Take your head out of Obumer and the DNC’s rump and spare us your bluster including your identity race card politics.

The entitlement programs alone will soon consume the entire federal budget soon if nothing is done, do you know that? I DO!

Yeah people get informed watch a few Glenn Beck shows if you dare tolerate a Libertarian, then do your own research.

Oh, and you don’t need a race card or claim an MBA to do that by the way.

Michael H. Smith

June 11th, 2009
6:15 pm

How many trillions has been spent on bailouts so far? Bailout for the banks, bailout for AIG, bailout of Wall Street, bailout the automakers and unions, bailout of the economy?

Want to put this years defense spending up against the total spending on the “social – bailout – welfare program” tally thus far? :)

John

June 11th, 2009
7:45 pm

“How many trillions has been spent on bailouts so far? Bailout for the banks, bailout for AIG, bailout of Wall Street, bailout the automakers and unions, bailout of the economy?”
Less than one, then the stimulus might be considered another. Try again liar.

John

June 11th, 2009
7:47 pm

And Glenn is a nutcase, a horrible representation of libertarians, more the paranoid lemming type.

Michael H. Smith

June 11th, 2009
7:54 pm

Michael H. Smith

June 11th, 2009
7:59 pm

No you try again liar John, the banking Wall Street bailout alone is roughly equal to this years defense budget. The amount tossed about for all these bailouts has been put at around $13 trillion in total.

Michael H. Smith

June 11th, 2009
8:13 pm

The U.S. government and the Federal Reserve had spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, as of March 31.

http://www.bloomberg.com/apps/news?pid=20601100&sid=aI.TvvSBYXBM

Michael H. Smith

June 11th, 2009
9:06 pm

All the President’s Csars

Look who is ahead of everybody at the front of the automobile train – the union caboose!

http://www.foxnews.com/video2/video08.html?maven_referralObject=5862590&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/glennbeck/index.html

Sp Ed Teacher

June 17th, 2009
4:20 pm

About half of NEA (teacher’s union) members are Republican~~Surprised? I know because I’ve been a member of the NEA Republican Caucus for about 20 years.