Ferrari Mailing List: Re: Interesting article on a previous topic

[Rick (Forza355]

That was the plan all along  by BO.  Inject Taxpayer $$$  into the Auto 
companies temporarily, then pretend you want to save them  but make demands 
that you know they cant make, then seize the companies and turn the  over to 
your UAW union thugs as a payback for their voting block in the last 
election. meanwhile, screw the bondholders out of their legally owned share 
of the company as guaranteed in their contract by giving them a fraction of 
what they are legally entitled to  by law. Fortunately the state of Indiana 
is not taking BO's screwing lying down and has filed lawsuits. Ironically, 
the Indiana state pension funds own the bonds that BO is screwing them over 
with. some of those  pension funds are state teachers unions pensions, the 
same NEA unions that elected BO. Oh the irony. I wonder if those teachers 
are enjoying their " change" yet? ;-)


Indiana state pensions sue to stop Obama's Chrysler deal

Wednesday, May 20th, 2009 | Economics | ShareThis

Obama's plan for Chrysler demoted senior debt holders (whom he maligned as 
"speculators") to benefit UAW union members. As a consequence of that 
decision Obama's plan shortchanged police and teachers unions who had 
Chrysler investments in their pension funds. Now the state of Indiana is 
suing.
 As stated in the filings, the US Treasury Task Force is seeking to use the 
Chrysler bankruptcy to extinguish the property rights of the pension funds 
as secured lenders, violating the most fundamental tenets of creditor rights 
in disregard of widely recognized bankruptcy jurisprudence. The proposed 
restructuring of stakeholders' rights seeks to make payments of billions of 
dollars to unsecured creditors, while paying the secured creditors only 29 
cents on the dollar.
 "As fiduciaries, we can't allow our retired police officers and teachers 
to be ripped off by the federal government. The Indiana state funds suffered 
losses when the Obama administration overturned more than 100 years of 
established law by redefining 'secured creditors' to mean something less," 
explained Treasurer Richard Mourdock. "The court filing is aimed not only at 
recouping those losses but also reasserting the rule of law and preventing 
the federal government from pursuing policies that strike at the heart of 
the capital system."

It's Economics In One Lesson again: "The art of economics consists in 
looking not merely at the immediate but at the longer effects of any act or 
policy; it consists in tracing the consequences of that policy not merely 
for one group but for all groups."
Previously: Obama's GM plan pits unionized retirees against non-unionized 
retirees
http://www.lesjones.com/2009/05/20/indiana-pensions-sue-to-stop-obamas-chrysler-deal/

----- Original Message ----- 
From: "Jim Conforti" <lndshrk [at] xmission.com>

>   Are they in Ch 11 as we speak? YES
>
>   Did the "bail out" work?  NO
>
>   What did the "bail out" do?  Transfer wealth from
> bond/stockholders and the taxpayers
>   into the hands of the UAW.  Nothing more, nothing less.
>
>   JC