"Vic Smith" wrote in message
...
On Wed, 6 May 2009 07:09:17 -0400, "Eisboch"
wrote:


Legitimate secured lenders have as much right to claim the assets as Fiat
does, regardless of how you may feel about "saving jobs". In fact, any
interference or manipulation of the bankruptcy court's proceedings by the
Fed may be illegal. This will be interesting to watch.

Yes. The bankruptcy court is bound by limits of law, but the judge
does have some discretion.
He may rule for those that Obama showed disdain for.
We don't want the executive unduly influencing the judiciary,
as has happened in past Presidencies.
Not naming names here.
I wonder if any of the creditors are insured against these losses.
By AIG, or is it AIU, or have they renamed it again.

--Vic

I don't think the judge has much of a choice, bond holders deserve a better
shake. The debtors can't just wave a wand and forget about the money they
owe and the prperties they pleged to bond holders. They should be told
their fanatasies are sociopathic and corrupt.

It is also why as an investor I will not touch an instrument in North
America that involves mortgages, debt, loaning, bonds you name it. Even
money markets, I stear clear. As GM & Chrysler are not the only ones in
default, governments too are increasingly in this pickle.

They should just roll GM & Chrysler into chapter 7, sell everything off and
pay out the debts per common everyday bankruptcy law. Someone will buy GM &
Chrysler without the baggage and turn it around.

Debtors need a wakeup call. Lets hope the courts stick up for decency and
Obama does not sell out the taxpayer too much in the process.