BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

[johngaltfla]

SALE TO CONITNUE
BREAKING NOW
MORE TO FOLLOW
FIAT AND HITLEROBAMA WIN
God help us

Repeat after me boys and girls:

Capital Flight

Why invest in anything in nation when contract law no longer applies?

This will destroy the corporate bond market and as a result equities and Treasuries. I would not put a dime in this market as a result. Politics over the 5th Amendment and Article I.

We're are toast.

[Slimprofits]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

This will destroy the corporate bond market

So says the authors of GOP talking points.

Yes, I think you others have been duped.

Obama sure did hand the GOP this one a platter. Talk about a political miscalculation!

The GOP has successfully used this episode, along with that of the Treasury dept. making firms that repay TARP raise certain levels of capital before doing so, to turn J6P members of the party and other little conservatives into lobbyists for the ABA and other Wall Street concerns.

It is fascinating to watch, but terrifying to experience because I can only imagine what these people will fall for next as we careen towards elections in 2010 and 2012.

Meanwhile, back in the non-political reality....

JUNE 8, 2009, 5:16 P.M. ET
UPDATE:CREDIT MARKETS: Investors Search For Yield In Corp Debt

Companies with credit profiles weak and strong tapped the solid demand for corporate debt Monday.

Risk premiums or spreads on U.S. junk bonds have fallen to the lowest since Sept. 26, according to Merrill Lynch & Co.'s U.S. High-Yield Master II index.

http://online.wsj.com/article/BT-CO-...08-714372.html

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

ADD:

THIS WAS A FULL COURT ORDER, NOT JUST GINSBURG.

There were not enough Justices in the poll to uphold the appeal or consider hearing the case.

Our Constitution just died.

Good thing there's lots of reality TV on to keep the sheeple occupied.

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

So says the authors of GOP talking points.

Yes, I think you may others have been duped.

Obama sure did hand the GOP this one a platter. Talk about a political miscalculation!

The GOP has successfully used this episode, along with that of the Treasury dept. making firms that repay TARP raise certain levels of capital before doing so, to turn J6P members of the party and other little conservatives into lobbyists for the ABA and other Wall Street concerns.

It is fascinating to watch, but terrifying to experience because I can only imagine what these people will fall for next.

Meanwhile, back in the non-political reality....

JUNE 8, 2009, 5:16 P.M. ET
UPDATE:CREDIT MARKETS: Investors Search For Yield In Corp Debt

Companies with credit profiles weak and strong tapped the solid demand for corporate debt Monday.

Risk premiums or spreads on U.S. junk bonds have fallen to the lowest since Sept. 26, according to Merrill Lynch & Co.'s U.S. High-Yield Master II index.

http://online.wsj.com/article/BT-CO-...08-714372.html

Really? If you think I'm a "GOP talking point" victim, you are sadly mistaken. I'm a Libertarian and STAUNCHLY anti-GOP. Those clowns set the table for this. You can quote today's news all you would like.

Get back to me when the first attempted sales hit in the months ahead and the foreigners start to reconsider the viability of a nation which usurps the 5th Amendment and Article I to accommodate a blatantly illegal bankruptcy proceeding.

Keep living in your left wing pipe dream. This will come to bite us back severely. Or are those 2 year bond prices I see cratering just another GOP talking point?:rolleyes:

[Slimprofits]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

Our Constitution just died.

Good thing there's lots of reality TV on to keep the sheeple occupied.

So it wasn't Lincoln, it wasn't the IRS, the Federal Reserve, the New Deal, Lincoln ending Bretton Woods, the drug war, the domestic war on terrorism, project Echelon, the national ID card, etc. etc. that killed the Old Republic and the Constitution, it was President Obama and his move against Chrysler bondholders?

haha

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

Supreme Court allows Chrysler sale to Fiat

Tue Jun 9, 2009 7:47pm EDT

By James Vicini

WASHINGTON (Reuters) - The Supreme Court on Tuesday cleared the way for the U.S. government-backed sale of Chrysler LLC to a group led by Italian carmaker Fiat SpA, a victory for the bankrupt automaker and the Obama administration.

The high court rejected a request from Indiana pension funds and other opponents of the transaction to delay the deal while they challenge Chrysler's sale to a group led by Fiat, a union-aligned trust and the U.S. and Canadian governments.

The Chrysler case has been widely regarded as setting a precedent for General Motors Corp, which also is using a similar quick-sale strategy in its bankruptcy in New York.

The Supreme Court in a brief two-page order said those seeking to put the deal on hold "have not carried that burden" to justify such action. The court's action was not a decision on the merits of the underlying legal issues, the justices said.

The Chrysler dispute marked the first time the Supreme Court had been confronted by legal issues involving the U.S. government's power to deal with the economic crisis.

The pension funds argued the Chrysler sale unlawfully rewarded unsecured creditors ahead of secured lenders, it amounted to an illegal reorganization plan, and the U.S. Treasury Department overstepped its powers by using bailout funds for Chrysler when Congress intended the money for banks.

Chrysler and the Obama administration urged the Supreme Court to allow the sale to go forward and said a long delay could kill the deal, resulting in the automaker's liquidation and the loss of more than 38,000 jobs.

They cited Chrysler's worsening financial situation, with $100-million-a-day losses. The sale agreement sets a June 15 deadline to close.

It would have taken the votes of five of the nine Supreme Court members to grant a stay putting the deal on hold. The court acted with no recorded dissent from any of the justices.

The White House had no immediate comment.

(Reporting by James Vicini, Editing by Philip Barbara)

[Slimprofits]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

Really? If you think I'm a "GOP talking point" victim, you are sadly mistaken. I'm a Libertarian and STAUNCHLY anti-GOP. Those clowns set the table for this. You can quote today's news all you would like.

Get back to me when the first attempted sales hit in the months ahead and the foreigners start to reconsider the viability of a nation which usurps the 5th Amendment and Article I to accommodate a blatantly illegal bankruptcy proceeding.

Keep living in your left wing pipe dream. This will come to bite us back severely. Or are those 2 year bond prices I see cratering just another GOP talking point?:rolleyes:

I didn't say you are a talking point, I said that I think you've fallen for GOP talking points. Maybe you're a little too wrapped up in the Obama hatred and let emotion get in the way of facts?

Corporate bond sales have only picked up since last fall and have continued throughout the period including when the Chrysler deal was first announced and Johnny Come Lately's to the Constitution is dead party started popping out from under the woodwork.

And to point your logical error, just because I claim and back up with data from the WSJ that your viewpoint is a talking point, doesn't make me a left winger. I am actually a registered Republican that contributed several hundred dollars to Ron Paul's campaign last fall.

And just because I think there were many worse episodes in U.S. history that did much more damage to the old Republic and the Constitution doesn't mean I am backing the President on this one...I get very annoyed at this attitude on display by you and many others that everything was fine and dandy until now.

And I wonder, why now, why not last year when the president nationalized AIG, Fannie and Freddie or long before that?

I'll be the first one to post the article in a month or two that describes corporate bond issuance has dropped to nothing because of this and will scream from the rooftops about how I was wrong. Don't hold your breath on that one though. Money is going to pour into corporate bonds as people continue to shun long-term treasury notes.

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

I didn't say you are a talking point, I said that I think you've fallen for GOP talking points. Maybe you're a little too wrapped up in the Obama hatred and let emotion get in the way of facts?

Have you ever read the Radford decision? If not, then your knowledge of the facts is limited to the rose colored glasses the Progressive Left has permeated your mind with. The rights of bondholders have been usurped for unsecured creditors. If you do not think that is of critical importance for the future of our bond markets moving forward, you are not very knowledgeable about contract law.

Corporate bond sales have only picked up since last fall and have continued throughout the period including when the Chrysler deal was first announced and Johnny Come Lately's to the Constitution is dead party started popping out from under the woodwork.

This is not a "Johnny Come Lately" party but then again, the left has had a propensity to distort facts ever since the people who believe in the Constitution were the ones who screamed loudest about the TARP act and the broad authorities granted within it. As I stated before what has already happened is irrelevant; going forward you have to ask yourself:

Will other nation invest in a country willing to dissolve contract law for unsecured creditors in favor of secured creditors?

If you think that this is a positive for our markets or economy moving forward, you're on crack.

And to point your logical error, just because I claim and back up with data from the WSJ that your viewpoint is a talking point, doesn't make me a left winger. I am actually a registered Republican that contributed several hundred dollars to Ron Paul's campaign last fall.

Bully for you. I'm not a registered Republican any longer, only did register as such last year to vote for Mr. Paul then changed back to independent. Republicans, by and large, are some of the most left wing souls I've ever met, willing to sacrifice the Constitution for political gain.

And just because I think there were many worse episodes in U.S. history that did much more damage to the old Republic and the Constitution doesn't mean I am backing the President on this one...I get very annoyed at this attitude on display by you and many others that everything was fine and dandy until now.

Check my blog for my track record. I was ripping and have been ripping both parties for ages. Bush was one of the worst Presidents in history and he should be thanking God that Carter took first place before he could.

I'll be the first one to post the article in a month or two that describes corporate bond issuance has dropped to nothing because of this and will scream from the rooftops about how I was wrong. Don't hold your breath on that one though. Money is going to pour into corporate bonds as people continue to shun long-term treasury notes.

Long term treasuries are toast only for the interim. The shorts have a rude Fed awakening when mortgage rates top the 6 to 6.25% range as the Fed will continue and accelerate the monetization policy causing a short squeeze and crushing your theory in very short order.

[Tybee Island]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

Down the rabbit hole we go. How sad that the rule of law has been pushed aside by our new fascism.

[metalman]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

This will destroy the corporate bond market and as a result equities and Treasuries.

We're are toast.

speaking as one with that attitude about the stock market since the tech bubble days, all i can say is... welcome to the club.

we'll keep an eye on the corp. bond market. your prediction, note...



how long before it crashes? a few months? you short?

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

speaking as one with that attitude about the stock market since the tech bubble days, all i can say is... welcome to the club.

we'll keep an eye on the corp. bond market. your prediction, note...



how long before it crashes? a few months? you short?

Full disclosure:

Long physical PMs.

Will not short as the Fed will buy bonds, Treasuries and Corporate to prevent a collapse ultimately. I think the end of Q3 will be the culmination now of the foreigner's exit from our markets and the FY 2010 financing efforts will be disasters at the start of Q4 triggering a corporate bond market collapse triggering the Fed interference.

Any creep above 6-6.25% on 30 year conventional mortgages will also force Benron's hand into a further and accelerated monetization by buying the 10's and 30's to bring the yield curve under control. His problem is now the 2 year notes which are exploding. I see that yield topping 2.35% + before they act on the short end.

[metalman]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

His problem is now the 2 year notes which are exploding. I see that yield topping 2.35% + before they act on the short end.

similar to the pop we saw in aug 2008?



explosion from a distance...

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

Yes metalman, similar except this time a twist; there was not over $180 billion in CRE to be refinanced in 2008.

200 bps over a 2.35% yield on a CMBS rollover will kill most of the regional banks as the default rate would accelerate far above current levels. Now that the zipperheads in DC have set the table, the dangers are far more precarious as the cash flow into CRE is not sufficient for any major increase in interest rates.

[ThePythonicCow]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

This will destroy the corporate bond market and as a result equities and Treasuries.

I'm wondering if perhaps this helps treasuries, in the short term anyway, as we saw the financial collapse help the dollar and treasuries late 2008. We're watching a steel cage death match between various dollar denominated assets, and it's clear that if anyone is left standing at the end, it will be the dollar and treasuries. Corporate bonds just took a blow.

Steel Cage Death Match

[johngaltfla]

Re: BRKG NEWS 6/9 1924: Chrylser and America dies Supreme Court Rejects Bondholders

I'm wondering if perhaps this helps treasuries, in the short term anyway, as we saw the financial collapse help the dollar and treasuries late 2008. We're watching a steel cage death match between various dollar denominated assets, and it's clear that if anyone is left standing at the end, it will be the dollar and treasuries. Corporate bonds just took a blow.

Steel Cage Death Match

Good point. We'll find out at 1 p.m. tomorrow when the 10 year auction results are published. If we see a huge tail and weak demand plus a move into the commodity currencies I think that tells the tale. If the ChiComs elect to issue Yuan based bonds as threatened that could destroy our corporate bond market in a heartbeat.