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Chrysler Deal Unconstitutional? Government deal favors the Union?

The Indiana funds claim the sale of Chrysler is unconstitutional, saying the plan upends the rights of senior lenders(bond holders) to be paid off before junior creditors (UAW) and the Treasury Department doesn't have the authority to lend bankruptcy financing under the Troubled Asset Relief Program.

http://online.wsj.com/article/BT-CO-20090603-708829.html

http://www.unionleader.com/article.aspx?headline=Obama's+theft%3A+He+can't+blame+'speculators'+now&articleId=5e3eaaea-2de0-41cf-9953-715558664274

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 7:00 AM on Jun. 9, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (17)
  • Shouldn't bond holders (in this case Indiana teachers, police officer, state pensions) who were convinced to buy into a troubled automaker be compensated BEFORE union? Afterall that IS THE LEGAL COURSE OF ACTION.
    Is this the future of American Business. Federal Government czars and administrationsTrumps laws set in place?
    grlygrlz2

    Answer by grlygrlz2 at 7:04 AM on Jun. 9, 2009

  • Sadly, I believe this is to be the case. Legal shmeagal, we've been told "he won," and we're to get over it already! ::sigh::

    Unfortunately when all Hell breaks loose, it's going to be too late for the "I told you so's." NO ONE wants to think they were wrong...so very, very wrong in their choice of President.
    LoriKeet

    Answer by LoriKeet at 8:17 AM on Jun. 9, 2009

  • LoriKeet


    It is your own opinion. Why you worry worry what others think or who they voted?


    I personally think we should do everything to save the Chrysler. We have high courts for desiding the matters.

    Anonymous

    Answer by Anonymous at 9:20 AM on Jun. 9, 2009

  • Ha, ha, we all know this is true. He's got to pay his voters back first. The government should have stayed out of this. It's only going to get worse. Chrysler's got terminal cancer, and yet the fed keeps trying to keep them alive with a series of bigger and bigger band aids. It's going to die, and not well.

    Capitalism takes care of itself.
    lovinangels

    Answer by lovinangels at 9:35 AM on Jun. 9, 2009

  • Uh, anon, Lori said "I believe this to be the case". So, you pointing out that it's her opinion is a little redundant. Besides, a very high percentage of what is posted here is opinion.


    As for the rest of your post, what does saving Chrysler have to do with paying bond holders?


    As for the OQ, I do think that bond holders should be paid before the UAW, but this is the payback they have been waiting for. 


    Lori, you sure have the ability to bring out the anons. :oP

    QuinnMae

    Answer by QuinnMae at 9:37 AM on Jun. 9, 2009

  • Nooooooo wayyyyyyyy!


    Not Obama!

    mustbeGRACE

    Answer by mustbeGRACE at 9:39 AM on Jun. 9, 2009

  • It's about freaking time! What the government is doing is blantantly unconstitutional. A lot of what has been going on lately is. Three cheers for Indiana for not rolling over!


    Anon 6:20, are you 6? WHY should a company that makes bad business decisions...to the point of bankruptcy be ALLOWED to succeed no matter what the COST to the taxpayers? IT SHOULDN'T! Yes, the courts do decide, that is what this question is about after all.

    Gee...I continue to be amazed at the intelligence levels of adults...voting adults...having kids adults....scary!!!
    yourspecialkid

    Answer by yourspecialkid at 9:59 AM on Jun. 9, 2009

  • We bought a used vehicle from a Chrysler dealership in the spring. You should see the email the President of that company recently sent out BLASTING the government & how they have handled this whole "crisis." Long story short, they were a profitable dealership that owned their property outright (including a new building) and because the guy who owns the dealership down the street is willing to play their games Chrysler is closing the profitable one and handing over their signs to the guy down the street! The new guy will be in direct violation of the contracts with Chrysler AND Ford because of the issues at his dealership. That didn't matter. Anyhow, I know it's a bit OT but it's all just so sickening!

    Him paying the UAW first is not only illegal it's just payback for helping him get into office. It's all just really really sad.
    Anonymous

    Answer by Anonymous at 10:24 AM on Jun. 9, 2009

  • I too bought a pacifica this past march, and do think this govt bullying companies into doing what they feel companies should do. Personally it should be up to the people since we are footing the bailout.

    Yes I am trilled that the Supreme court deemed it unconstitutional. These bond holders are secured debt holders of the company, not so with the Union. A contract is a contract and these investors have put alot into a secure debt. The govt needs to stop paying special interest groups and start upholding the law.
    DawnPratt23

    Answer by DawnPratt23 at 10:40 AM on Jun. 9, 2009

  • Bah, I guess this is something else the "other side" doesn't want to talk about. Quick, someone post a food stamp question so they'll all come out of the wood work!
    lovinangels

    Answer by lovinangels at 11:07 AM on Jun. 9, 2009

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