06-09-2009, 12:41 PM
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#5
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Hall of Fame Poster
Join Date: Aug 2006
Location: Boston
Posts: 25,142
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Re: Obama Claims TARP Issue Is Out Of Supreme Court's Authority
I've heard that the plan is illegal. That the secured creditors are supposed to be paid their debt, before the unsecured creditors are. This case should be interesting. I personally hope it's heard, just to see how it plays out legally. If secured creditors can be whizzed on, at the discretion of someone outside the law, then what precedent does that set moving forward? There are secured, and unsecured, for a reason I would think. Maybe Shmess might know a little more about this stuff.
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The secured creditors who opposed Obama's out-of-court restructuring plan – including about 100,000 retired Hoosier teachers and 1,800 retired State Police officers – were greedy and unpatriotic only if it is wrong to expect the repayment of debt and the impartial enforcement of laws.
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Ponder the perversity of Obama's plan. Secured creditors, who invested nearly $7 billion in Chrysler under contracts requiring them to be repaid first in the event of bankruptcy, were offered a settlement of 29 cents on the dollar. Its unsecured investors, meanwhile, would receive 59 cents on the dollar, with the Obama-friendly United Auto Workers gaining a major share of control and Fiat getting 20 percent ownership without investing a cent.
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Mourdock also pointed out that Obama's Chrysler plan includes the use of some of the $700 billion originally set aside for troubled financial institutions – an illegal investment that has made the automaker “a puppet of the federal government. Hoosier retirees are being deprived of millions of dollars while a foreign corporation receives a windfall at no cost.”
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Challenge by state funds delays bankruptcy plans | The News-Sentinel - Fort Wayne IN
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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897
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