Tuesday, June 02, 2009

A Matter Of Law

Editorial - June 2nd, 2009 - Investor's Business Daily

GM's bankruptcy pushes bondholders aside in favor of the U.S. government and the UAW. Though bondholders hold $27 billion in debt, they'll get just 10% of stock.

How's that compare with the other "stakeholders?" For spending $50 billion to bail out GM, the government will get 60% of the equity in the new GM; the UAW, which along with other unions gave millions to Democrats, will be repaid for its loyalty with 17.5% of the stock for $10 billion of unsecured debts [plus they get $6.5 billion in preferred stock and $2.5 billion in bonds, for a total of $9 billion PLUS the 17.5% in common stock].

So the government, with roughly two times what private bondholders have on the table, gets a stake five times bigger. And the union, with about a third as much "invested," gets a 70% bigger stake [not counting an additional 90% of their stake in preferential assets]. Even the Canadian government, with its $9.5 billion "invested," ends up with 12%.

They call it "restructuring." We call it theft.

It is theft. Blatant corruption on a scale never before attempted in America. It is amazing how the worst tyrants are always smiling mild mannered people. Obama smiles, and then destroys his enemies with deceit and lies. How can you tell if Obama is planning to do something? Why all you have to do is list things he has said he will not do. He is an outrageous liar and nothing he says can be believed.

The only question is whether our politicized courts can do anything fast enough to stop him. The sense of urgency he keeps pushing is intended to keep moving things so quickly that before anyone with the power can stop him it is too late. Now, now, now. That is all you hear from him.

This article talks about someone filing a federal court case to stop this stealing. It "hopes" the Supreme Court will do something. Long before either comes to fruition, America will be a fascist state ruled by a dictator. We are storming down that path every day Obama is in power.

The courts have abandoned "the rule of law" and Obama is showing them what that really means.


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