Every American should be extremely disgusted with the tyrannical actions that have transpired regarding Chrysler with our Government browbeating some of its creditors into submission. They publicly chastised a group of creditors that had a right, in fact a fiduciary duty, to protect the value of their investments in Chrysler for the benefit of their shareholders. These assets were senior to all other claims in the capital structure thus giving them the right to the company assets before any junior creditor is to be paid. However, the Obama administration was more interested in the company quickly reorganizing to protect the union, thus embarking on a plan to hand Chrysler over to the union as the majority shareholder under reorganization and upon doing so they offered the senior creditors what they thought was deserved in this restructuring. Four major banks that held about 70% of the debt quickly agreed to the terms, and to no surprise it just happens that they are all TARP-recipient banks. How peculiar it is that these banks thought the deal was equitable and voluntarily consented, I wonder if the fact that they received TARP money from the Government had anything to do with such consent, it indicates just how much our banks are merely Government-controlled puppets. The remaining senior creditors held out to exercise their rights and thus forced Chrysler into bankruptcy in an attempt to have the law applied as written and practiced through the years of legal history in this nation. Instead of this Administration respecting the law and allowing due process, they chose the course of expediency by publicly castigating the creditors for merely exercising their property rights. Obama used his political capital to influence public opinion against these firms, isolating them, and creating an atmosphere that will prove unreceptive to their legal rights in court. This is absolutely an abuse of power, Obama and his administration are blatantly wrong with this action, but that will prove little comfort to the creditors as the deck is stacked against anyone not falling in line with the plan thus fighting the case becomes futile. We live in a country where “ruler’s law” just stomped on the “rule of law” by coercing certain citizens into conceding their property rights so the benefit can be transferred to another. Sound familiar?

There certainly will be a tendency to disregard this case and its outcome as something that happened to rich people, hedge funds, or money managers, hence making it no big deal for common Americans. If the Government just trampled on legally protected rights for one set of Americans because it favored their agenda to do so, who and what are next? Maybe a family that has more than one car will have to give one up for 33 cents on the dollar so the car can be provided to someone who does not have one. What about your home, can the Government arbitrarily decide to exercise control over your residence if it suits their agenda much like we know they can if you miss your tax payment? This argument can extend to anything that you own, any property that you should have the rights to buy, use, or sell at your discretion. This can be in the form of a physical possessions or paper investments such as stocks, bonds or contractual rights of ownership etc. It should be very disturbing to every citizen that individual legal rights were just brushed aside in favor of the agenda of another. It does not matter if it was for a company or an individual, for the wealthy or not so wealthy, this is an assault on all of our rights. Every time citizens relinquish any of their rights, they are then absorbed into the power of our controlling Government. It will become the new reality and will be relied upon to serve as precedence for any future tyranny our Government cares to administer on our population in its ever persistent march to expand its scope. Our Government and its union-protecting agenda won the day, but unfortunately America and its citizens lost. Where does it go from here, and where does it end?

 

P.S. What are the chances of success for what is likely to be a 65% Government and union-dominated Chrysler post bankruptcy? Be sure to rush right over to your nearest Chrysler dealer, Fiat will be depending on it.