Chrysler decided to declare bankruptcy last week but the Obama Administration decided that would not be allowed so they intervened. In doing so they decided that they would give over half the company to the United Autoworkers Union, keep a chunk for the U.S. Government, give a sliver to the Canadian Government, and sell the rest to Fiat, an Italian auto-manufacturer. In the process, the Obama Administration has told Chrysler’s bond-holders that they will be forced to write down 2/3 of the value of the debt they hold and will not have the opportunity to sell off Chrysler’s assets, as would be not only customary but the legal steps in a bankruptcy.
The most serious problem with this is the blatant disregard for contract law and the general rule of law that has been exhibited by our Government.
However, just a little anecdotal piece is how ironically absurd it is that the Obama Administration has been trying to save the American auto industry while attempting to convince Americans to “buy American” only to then sell a large chunk of a large American auto-manufacturer to an Italian company!
Once again, I have underestimated the absurdities that the people of this nation will allow from their Government.