The US Supreme Court denied an Indiana Treasurer's appeal that the Chrysler transfer to Fiat be overturned. Not enough members of the Supreme Court felt that the argument had merit and decided not to meet on this issue.
This appears to be another nail in the coffin for Capitalism. Perhaps bondholders may not have gotten more from a liquidation of Chrysler. That's not the point. The point is, bond holders are senior creditors. They deserve first crack at the assets remaining in the company. But in this case, senior "secured" creditors were anything but.
It won't be long before the government trashes our dollars and gives us pennies on our real dollars. Time to start looking for offshore investment options I think.
Tuesday, June 9, 2009
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