U.S. top court justice grants Chrysler sale delay

[johngaltfla]

U.S. top court justice grants Chrysler sale delay

Mon Jun 8, 2009 4:28pm EDT
WASHINGTON (Reuters) - A U.S. Supreme Court justice on Monday granted a request to put on hold the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA.


U.S. Supreme Court Justice Ruth Bader Ginsburg, in a one-sentence order, said the orders of the bankruptcy judge allowing the sale "are stayed pending further order of the undersigned or of the court."
(Reporting by James Vicini, Editing by Carol Bishopric)


(Score one for the good guys-Let us all hope that the Supreme Court hears the case and validates the original Radford decision from 1935 thus protecting our 5th Amendment rights from illegal taking by the Government. The next 72 hours will not be dull!-JG)

[big67]

Your comments?
Do you think it is better for Chrisler to be liquidated than sold to Fiat?
BTW I read Fiat will be in for a 20% stake initially, with an option to rise to 35%.

[ASH]

Re: U.S. top court justice grants Chrysler sale delay

Your comments?
Do you think it is better for Chrisler to be liquidated than sold to Fiat?
BTW I read Fiat will be in for a 20% stake initially, with an option to rise to 35%.

I think it is better that the rule of law prevail, and that the contractual rights of secured debt-holders not be violated for the sake of public expediency.

[johngaltfla]

Re: U.S. top court justice grants Chrysler sale delay

Your comments?
Do you think it is better for Chrisler to be liquidated than sold to Fiat?
BTW I read Fiat will be in for a 20% stake initially, with an option to rise to 35%.

I'm not wagering as to what will happen. The problem is that you have two major violations of the Constitution but the implications of a ruling on either will shake not just the markets but the halls of Congress for the remainder of this session.

1. Violation of the 5th Amendment

2. Violation of Article 1, Section 9

The first is cut and dry. The bondholders have always had priority over all other creditors in bankruptcy and the usurpation by the Obama administration of 150 plus years of law in the Chrysler and GM cases had bond managers somewhat concerned. If the Supreme Court rules in favor of the Administration on this point, Fiat gets Chrysler for free (it is no sale, not by any stretch of the imagination or legalese) and we will see a capital flight out of this country that will wipe the corporate bond market out.

The second one is over the TARP and is very cut and dry. Funds were appropriated and the methodology for the use of those funds codified by Congress within the TARP. The distribution of these funds by the administration would require a new law from the Congress if they are to be used for the Insurance or Automotive industries. Since no laws have been passed, you can rest assured that all funds issued to non-financial (banking) entities for the purchase of "Troubled Assets" as definied within the TARP will have to be returned immediately and the DIP funding for the Chrysler and GM bankruptcies will be withdrawn forcing them to cease all operations immediately unless emergency funding is found and approved by the bankruptcy court.

I think this has a 75% chance of the good guys (the rule of law) winning. It does mean the liquidation of Chrysler and GM.

[johngaltfla]

Re: U.S. top court justice grants Chrysler sale delay

It is a great sign that the court has stayed the sale. This is perhaps the most important decision during this crisis. It will tell a lot about the application of the balance of powers afforded in the US constitution. You have a State (Indiana) litigating against the Executive Branch and the Legislative Branch over property rights and the governments power to unilaterally ursurp said (for the good of a preferred constituency) . Add to that the restriction of the power of congress not to spend the peoples money in a way that was not presented to the people during the debate :rolleyes: leading up the passage of a spending bill. This is why it (the constitution) was set up that way. You can control the Executive and the Legislative but is very hard to control those two and the Judicial as well. The dollar will only survive based upon the rule of law and the strict tradition of US property rights. Otherwise it (The Dollar) is no better then the yuan. Here's to rooting for the good guys!

Uh, the dollar is not better than the Yuan. I hate to break this to you.....:eek:

[kingcopper]

Re: U.S. top court justice grants Chrysler sale delay

Uh, the dollar is not better than the Yuan. I hate to break this to you.....:eek:

Your wrong my friend. With all of the sh*t going on in America, the dollar is still better than the Yuan. Afterall, our gov. can slowly bloodlet the value of the dollar but the Chinese can just tell everyone holding the Yuan to pound sand. That is a serious flaw in a so called free market.

Just because we at Itulip collectively see currency flaws doesn't mean we have to continually sh*t on the USA or the dollar in particular.

I will admit that the future of the Yuan is better than that of the dollar right now.

[johngaltfla]

Re: U.S. top court justice grants Chrysler sale delay

Your wrong my friend. With all of the sh*t going on in America, the dollar is still better than the Yuan. Afterall, our gov. can slowly bloodlet the value of the dollar but the Chinese can just tell everyone holding the Yuan to pound sand. That is a serious flaw in a so called free market.

Just because we at Itulip collectively see currency flaws doesn't mean we have to continually sh*t on the USA or the dollar in particular.

I will admit that the future of the Yuan is better than that of the dollar right now.

King, you contradicted yourself; you said the dollar is better for now but that the future of the Yuan is better. The future is what counts, not alleged current floating valuations when both nations are engaged in blatant currency rate manipulation. If you think for one minute the Fed is letting the dollar float completely and freely you're wrong.

The entire purpose of the overseas dollar supply auctions was to support the dollar by providing supply for the liquidation of dollar denominated holdings overseas.

The demand at the last auction in Australia: $0.00

Nothing bid, nothing sold. The dollar is rolling over and once the technical level of 78 is fractured we plummet to 72, then last year's lows and soon thereafter to 62 on the USD index.

When a nation is a DEBTOR NATION with over $99 trillion in total obligations over the next decade and accelerating as the government spends like drunken Senators (I couldn't slander sailors), there is no possible way to pay off or even service this debt without hyperinflation.

Thus they will and that makes a creditor nation's currency (like China) stronger than a debtor nation's every time. Even if it is a "Communist" country that manipulates its financial markets.

Ooops, we're as Socialist nation manipulating our financial markets.

Nevermind.

[ThePythonicCow]

Re: U.S. top court justice grants Chrysler sale delay

Thus they will and that makes a creditor nation's currency (like China) stronger than a debtor nation's every time. Even if it is a "Communist" country that manipulates its financial markets.

Ooops, we're as Socialist nation manipulating our financial markets.

I beg your pardon . As a proud American I must protest. American Banksters are far better at manipulating financial markets than those upstart Chinese :rolleyes:!

[dummass]

Re: U.S. top court justice grants Chrysler sale delay

That's funny