The Obama Adminstration Forced Chrysler to Accept Bankruptcy

Discussion in 'Politics' started by C-101, Jun 8, 2009.

  1. C-101
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    C-101 Old School Conservative

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    This is a really long article, so I'll just give you a preview.

    Obama's man called shots on bankruptcy | Freep.com | Detroit Free Press

    Essentially, Chrysler secured concessions from the UAW and therefore they stood a chance of avoiding bankruptcy and government intervention.

    However, Obama's man Rattner gave the banks an ultimatum: Accept the terms or liquidate Chrysler.

    Therefore, Chrysler was forced to accept the bankruptcy terms agreed upon by the banks and the government or face extinction.

    Overall, the Obama administration forced the government into this matter and made any option outside of government intervention impossible. As a result, this proves Obama wanted to control Chrysler through the government and he is now advancing his environmental agenda as a result.

    Without a doubt, it is clear now that Obama lied when he said that "I don't want to run a car company."

    With concessions made by the UAW, Chrysler had a chance to survive without bankruptcy and therefore government intervention.

    But Obama's auto man Rattner would hear none of that. Chrysler was going into bankruptcy, the government was taking a share of the company, and that was that.
     
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  2. AllieBaba
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    AllieBaba BANNED

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    I can't believe this isn't bigger news. When the national government forces companies into bankruptcy, there's a BIG problem.
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    Did I hear someone say "constitutional crisis"??
     
  4. STAND4LIBERTY
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    STAND4LIBERTY Independent Libertarian

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    This makes it sound as if there were only 2 choices though, Chrysler could have very well went into a (non-politicized) Bankruptcy, reorganized and come out the other side as a healthy company. Either that or had it's assets sold off to effecient producers, either of which would have been better for the long term health of the economy.

    As it stands now, Chrysler (an inefficient producer) is holding productive resources hostage under the direction of the least efficient producer in the Universe (the Federal Government).

    So out of all the available options in this scenario our government in it's infinite wisdom chose the dumbest one available and at the point of a gun no less.
     
  5. AllieBaba
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    AllieBaba BANNED

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    Then perhaps they shouldn't have been given stimulus money.

    When the gov't is forcing companies to cave against their wishes, we're in trouble.
     
  6. Oddball
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    Oddball BANNED Supporting Member

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    I don't believe they were. I hear that money has been siphoned off of the TARP scheme for this boondoggle...Which itself goes against that legislation.

    More ruling by executive fiat.

    Big trouble.

    The Chrysler shotgun marriage circumvents both established bankruptcy laws and the takings clause of the 5th Amendment.

    More ruling by executive fiat.
     
  7. C-101
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    C-101 Old School Conservative

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    Chrysler tried to avoid the government.

    They couldn't.

    Obama's man called shots on bankruptcy | Freep.com | Detroit Free Press

    Rattner declared their turnaround plan unacceptable and moved forward with the government's version.

    Beyond that point Chrysler had two options: Play ball or die.
     
  8. WillowTree
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    WillowTree Diamond Member

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    Chrysler should have called their bluff, filed chapter 11 and dumped those unions off their azz!
     
  9. STAND4LIBERTY
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    STAND4LIBERTY Independent Libertarian

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    Understood, which is why I pointed out that the government decided to take the dumbest option possible. I wasn't blaming Chrysler Management for the results .... they only get the blame for running the company into the ground into the first place. ;)
     
  10. RodISHI
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    RodISHI Gold Member

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    Since Canada has come into the mix on bitching about the buy America... How many perks does Chrysler get for their factories in Canada? Simple issues like medical cost for employees etc..
     

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