http://online.wsj.com/article/SB124217356836613091.html "The Obama administration's behavior in the Chrysler bankruptcy is a profound challenge to the rule of law. Secured creditors -- entitled to first priority payment under the "absolute priority rule" -- have been browbeaten by an American president into accepting only 30 cents on the dollar of their claims. Meanwhile, the United Auto Workers union, holding junior creditor claims, will get about 50 cents on the dollar." This is change we can believe in. Lets screw the guys we don't like and pay the guys who helped get him elected.
Funny thing is, by doing this Obama is pounding another nail in the coffin of the UAW. Creditors are already nervous about lending money to the Big Three. Now Obama has just given them another good reason to STF away.
Maybe after he leaves office, the next President can get a bunch of polital hacks to release a bunch of internal memos to expose his abuse of power. That would be true poetic justice.
Who will lend to GM now? We're going to end up with two nonviable auto companies, supported in perpetuity by the US taxpayers to preserve cushy union jobs and lavish retirement benefits. Might as well merge them with the Post Office. Maybe they could outlaw the sale of cars made by any other companies. That is the one way these two will be viable. There used to be a limit on unions' ability to strangle companies, and it was called bankruptcy. Now that limit is gone. If the company fails and has a large unionized workforce, the government will step in and piss away taxpayer dollars to reward its union backers.
the beauty is this is unsustainable in the long-run. All this intervention in the free market will serve as a reminder 20 years from now that it doesn't work.
"The Chicago Way" .... really quite extraordinary. Just Imagine, Obama taken to the supreme court to be judged by his ("empathic") appointees. Strange days, following the idiot-left press, I sense almost a desperate cry from these leftists, hoping the conservatives will rise again and save them from their own insanity