Should US debt holder get the GM & Chrysler debt holder treatment?

Discussion in 'Politics' started by CrusaderFrank, Jul 9, 2011.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    When Obama was nationalizing the US auto industry he disrupted the orderly bankruptcy which would have given the senior secured debt holder preferred rights in the eventual reorganization. Instead he dismantled the debt holder as a class and turned the economic benefits they were rightly entitled to receive over to the UAW.

    My question is, should US debt holders, that is people that own US Treasury securities get the GM & Chrysler debt holder treatment? And if not, why not?
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Chrysler bein' sold to Fiat...
    :eusa_eh:
    Fiat to buy full control of Chrysler
    January 2, 2014: U.S. automaker Chrysler will become fully owned by Italy's Fiat under terms of an agreement announced Wednesday that also involves the United Auto Workers union.
     
  3. BlindBoo
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    BlindBoo Gold Member

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    I smell a re-write.

    Least we forget where GM was headed.

    General Motors near Chapter 7 Bankruptcy Liquidation | True Discernment

    Only federal aid can prevent a collapse of the biggest U.S. automaker, analysts including Buckingham Research Group’s Joseph Amaturo said before the shares tumbled today for a fifth straight day. Reorganizing in court protection also may not be possible, because the credit crunch has dried up financing.

    “Strategic bankruptcy is not an option for GM,” said Mark Oline, a credit analyst with Fitch Inc. in Chicago. “This is an issue of operating or not operating.”

    The prospect of a forced liquidation raises the stakes for GM’s quest for new federal borrowing after saying on Nov. 7 it may run out of operating cash as soon as year’s end.
     

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