Protection of private property rights anyone?

[Cuba]

Is anyone else concerned about the federal government recently committing extortion in regards to the Chrysler bankruptcy? They have threatened to use the full force of the White House press corps to destroy the reputation of the company representing the bond holders if they don't agree to give up their private property rights. The bond holders have secured debt, meaning in a bankruptcy proceeding they collect their debts first, either by specifically secured assets or in liquidation of assets. Instead Obama has offer to give the unions, who hold unsecured debt, rights to 50 cents on the dollar, and bond holders only 29 cents!

First off this is completely illegal, and second, when have we given the White House the rights to negotiate bankruptcy filings? Now the president feels that he can supercede the judicial system and literally give away the private property of bond holders (the pensions of people that invested in these bonds) to his friends in the union! They have zero legal claim to that money! How would you feel if the remaining value of your already devastated 401(k) was literally given to the unions who have no rights whatsoever to take it? This may be what they meant by "spreading the wealth around". They are confiscating it illegally and giving it to their own supporters!

 

[boo68]

It is scary as hell. I am sorry to say, but in my opinion, none of these bailouts should have happened..the companies if they were allowed to fail would likely have been bought out by more secure, stable companies, and a lot of jobs would have been saved. These companies never planned for the future, didn't run their companies conservatively enough.

 

[boo68]

Unions too, need to learn to bend.. I know they are there for the protection of the workers.. but if there is no company, there is no job.

 

[08fz6]

The only thing I see unions do is fight to keep the useless worker! They seem to do nothing for the hard worker who never does nothing wrong....... To be honest I feel there should be no unions. I have worked many jobs that do not involve unions and I work with a bunch of useful people not uselesss.......

 

[boo68]

I agree with you about Unions, but there are people that are represented by unions that are very useful and honest and want to do the job right.. So I didn't want to offend those hard working people. We also need to get back to the basics about hiring people based on their education and experience, those are the people that want to excel and ultimately are the best investment in any company.

 

[Skeeter190]

This may be what they meant by "spreading the wealth around". They are confiscating it illegally and giving it to their own supporters!

"They" should be voted out of office ASAP!

That's so Un-American to seek a resolution for the blue collar debt holders as well as the white collar debt holders!

 

[Cuba]

"They" should be voted out of office ASAP!

I think holding them accountable to the law would be enough for now. Honestly, do you think your president should spend his time inserting himself as a bankruptcy judge at all, let alone when his friends are trying to take money that isn't theirs? He has no business, legal right, or experience whatsoever to do this, and considering the fact that he has been VERY strongly supported by this same union, I'd say he has a strong conflict of interest to be playing the impartial moderator, wouldn't you?

So the unions get their unsecured debt paid at 50 cents on the dollar, the secured debt holders who are average American citizens that have Chrysler bonds in their 401(k)'s get 29 cents when they have every legal right to collect all of their debt before the unions, AND the union gets 55% ownership and control of the company once it exits bankruptcy. Pretty good deal for the union, I'm glad they were willing to make such sacrifices. If I were one of these bond holders I would suing. Your president just illegally redistributed your money to his supporters, and then publicly stated that he won't stand with you.

 

[Cuba]

"They" should be voted out of office ASAP!

That's so Un-American to seek a resolution for the blue collar debt holders as well as the white collar debt holders!

I'm sorry were you confused? Who are these "white collar" debt holders you speak of? They are millions of Americans (with a wide variety of shirt colors) that have 401(k)'s, and they have a legal right to collect that debt. Our government has the legal responsibility to protect that debt obligation. Our judicial system is based on that fact.

These bond holders lent money to Chrysler in exchange for secured debt that is protected in the event of bankruptcy. They paid their hard earned money to keep Chrysler going, to pay for the pensions and salaries of Chryslers' employees. The employees failed to make significant concessions, the company tanked, and now they are relying on the guy they supported during the election to help them strongarm the bond holders and illegally take money that isn't theirs.

Please explain why the law shouldn't apply this time, I think we're all curious.

 

[Skeeter190]

Your president just illegally redistributed your money to his supporters, and then publicly stated that he won't stand with you.

Huh? I own Chrysler stock/bonds?? News to me. Thanks for the update!!

PS: "Our President"
PPS: When the President does it, it's not illegal.

 

[wrightme43]

Huh? I own Chrysler stock/bonds?? News to me. Thanks for the update!!

PS: "Our President"
PPS: When the President does it, it's not illegal.

Either you are playing dumb here or being a jerk. I am leaning towards being a jerk.

I have warned you 5 times.

Now I am done.

You are banned.

 

[SovietRobot]

Does anyone else realize that by declaring bankruptcy, Chrysler gets MORE of our money?
Ugh.

 

[Cuba]

Does anyone else realize that by declaring bankruptcy, Chrysler gets MORE of our money?
Ugh.

Yes I got a brief review of what the "Obama terms" are for the bankruptcy. Unions get the control of the company, 55% ownership, 50 cents on the dollar for their unsecured debt, and we get to give them another what, $8 billion in tax dollars?

The bond holders get to enjoy grand theft, they get only 29 cents on the dollar for there secured debt while the unions are laughing their way to the bank... with the bond holders' money. No equity either. "Sorry, we won, you lost."

But wait, it gets worse. We taxpayers also have a major stake in this, and we are the real losers here. In fact our stake is twice that of either the unions or the bondholders. Our deal is by far the worst of all, thanks to the expert negotiator that was taking care of our interests in this. We have already invested billions of dollars in this company to keep it going (remember, a lot of that money went directly to the payrolls of the unions in the first place), now when the union is illegally given the company, the president is also offering them another $8 billion or so of our money to blow through, and in exchange we got... 8%!!

I can't see how this is not a crime?

 

[Cuba]

UPDATE:

Great news today, a group of the secured credit holders is suing to stop the bankruptcy proceedings, citing their absolute right under the law to collect their secured debt first, AND that the treasury department has overstepped their authority granted by TARP, which states they can only lend to financial institutions.

Who are these evil, greedy, theiving, white collar bondholders that single handedly caused the bankruptcy of Chrysler you ask (As Obama and a member here are calling them)? They are the State Teachers' Retirement Fund.

Here's the article:

FT.com / Companies / Automobiles - Funds move to halt Chrysler restructuring