The Supreme Court Looks At The Chrysler Sale
On May 25th I charged Obama Has Broken Contract Law. Now, the Supreme Court has stalled the rush for Fiat to purchase Chrysler to examine the case of the senior creditors to see if their rights were abused.
…bankruptcy law is about seniority of creditors, not about the well-being of unions, no matter what the sacrifices of the workforce may have been.
We’ll see if the Supreme Court stands up for the rule of law.
It’s interesting that Richard Maybury in the latest Early Warning Report wrote about contracts. He wrote:
During the 20th century, governments overlaid the web of (private) contracts with a vast network of political regulations…The regulations modify the contracts willy-nilly. This means the government is a third party to every contract, and it has given itself the privilege of forcibly changing the terms any time it wants.
That’s evident when the government thinks it can use a judge to change a mortgage to benefit the home owner. It means it can abrogate the rights of senior creditors. It even means it can seize your property and give it to someone else all in the name of the public interest.
Let’s hope the Supreme Court stands up for the Rule of Law!
Please enjoy the article and comment below, email me at landfair3554@comcast.net or follow me @movermike
Mike Landfair
UPDATE: In a two-page order issued late Tuesday, the Supreme Court said it had not made a decision on the merits of the appeal by the Indiana funds, who have protested the government’s treatment of Chrysler’s secured lenders. Instead, according to the order, the Indiana funds “have not carried the burden” of proving that the Supreme Court needed to intervene.
Apparently the Constution and the RULE OF LAW do not apply in the u.s.a.