You’ve heard that “talks” broke down last night between investors and “the administration,” forcing Chrysler to file Chapter 11. The breakdown came as a small groups of investors refused to accept the “loan reduction proposals” offered by “the administration.”
Obama harshly criticized the holdouts: “I don’t stand with those who held out when everyone else is making sacrifices….”
God forbid anyone oppose Die Fuhrer!
The groups, however, about 30% of stakeholders, claim the administration systematically excluded them from negotiations with the four big banks (all bailout recipients) who hold the other 70%. Thus they had no voice in the alleged proposal. And mind you the “proposal” called for these guys to take up to an 85% loss on their investments. This is more than a “haircut,” this is getting your head chopped off at the knees. So these investors have decided to take their chances in bankruptcy court.
Court may be the proper place to handle it all. By condmening those who wish to take their legal chances, Obama is essentially saying he won’t stand with those who want to enforce contracts. He apparently doesn’t believe in the rule of law. Instead, he tries to spin the rhetoric, calling the holdouts’ counter-offer ”an unjustified taxpayer-funded bailout.”
What?!? Since when has the Bailout-King objected to tax-payer funded bailouts? Apparently since they go against his wishes. That’s when they become “unjustified.” Apparently, he’s the Justifier. $1.6 Trillion deficit to fund liberal pet projects? No problem. When investors request a mere $250 million more than offered? “How dare these ‘Vultures’ not take our offer!”
I wonder what happens when the public hysteriocracy no longer irrationally condemns whoever Obama points at. Will he soon begin to feel the pinch of hypocrisy when the mindset of “Bailout Nation” he has created becomes the status quo, and creatures from all corners come crawling to Pharoah for their grain. Will he see that tyranny has unfolded? Or will he just enjoy it?
Granted, if whatever returns these investors were to have gotten were to have come from Treasury, then true, the bailout is unjustified. But this is because all tax-payer funded bailouts are unjustified. If the court really enforced contracts like they should, these investors would take their scalping and move one. But so would the Banks, the US Treasury, the Fed, and every other immoral institution that leans on the crutch of bailouts.
In retrospect, Chrysler was dependent upon a deal with Italian auto-maker Fiat in order to save their hide. Well, what could be more fitting than bailing out failing businesses with fiat—fiat money that is. The old joke was that “F-I-A-T” stands for “Fix It Again Tony.” With a little stretch we can say “Fix It Again Tim,” every time Geithner runs back to the Fed for more.
Joel McDurmon, M.Div., Reformed Episcopal Theological Seminary, is the Director of Research for American Vision. He has authored four books and also serves as a lecturer and regular contributor to the American Vision website. He joined American Vision's staff in the June of 2008. Joel and his wife and four sons live in Dallas, Georgia.
