So much for hoping that the changes in the mortgage rules would only be a one time problem
While the judge in the NHL case has yet to approve this request, I am sure that there are lots of other cases that are now going to ask for the same exception. The Obama administration is able to take some money from the Chrysler and GM bond holders, but at what cost? One wonders how much interest rates are already going up because of this increased risk. From the WSJ:
Within days of a bankruptcy-court judge's approval of the government's plan to sell Chrysler to Fiat SpA and leave creditors with big losses, a lawyer in the bankruptcy case of the National Hockey League's Phoenix Coyotes invoked Chrysler in trying to push through the speedy sale of the team.
Should the judge approve that move and allow the Coyotes to be sold quickly, as Chrysler was, it could put some creditors out in the cold, leaving the NHL and other investors without the kind of input typically afforded by bankruptcy law. . . .
"The concern is that you have thousands of lenders, hedge funds, insurance companies who model their investments on rules and laws," said Stephen Lerner, a lawyer for a committee of Chrysler dealers. "How do these folks make investment decisions when they're faced with bankruptcy courts that appear to disregard the rules?" . . . .
Labels: bailout, bankruptcy
posted by John Lott at 5:05 PM
3 Comments:
This is the problem with cutting corners "just this once". Bama did it, so now someone else, another opportunist trying to make all he can off of someone else, will ask "how can you question the immense wisdom of POTUS?".
And there is no good answer. Bend, spindle and mutilate the law as you wish, but be aware that while you hurt the "right people" today, tomorrow someone might decide to hurt you using the same rules you just invented.
No wonder most Germans watched passively as their neighbors were put on trains for the camping trip of a lifetime...they knew damn well that resistance meant a trip for them. That is what they allowed the "rule of law" to become.
And where do we go from our current nadir? What laws are next?
Welcome to the wonderfull world of socialism. We doan need no steenkin' Constitution!
It is a sad day indeed when many stand idly by while the POTUS does whatever he wants, and the cost to the people be damned.
On a more serious note...
What we are seeing here, is a failure of the three branches of government failing to do their most basic of assigned tasks.
Checks and Balances. None of the three branches of government are keeping each other in check. The balance is lost, and it tilts towards Socialism now.
Mr. Schell, in his last two paragraphs summed it up nicely. The Nationalsozialistische Deutsche Arbeiterpartei nearly destroyed Germany, and damn few raised a finger in protest. Guns were taken away. Freedom of speech was suppressed. Businesses were seized. Enemies of the state were incarcerated. Mind control of the populace was used. In the end, millions were brutally murdered.
History does not repeat itself, human nature does.
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