CNN

That's right folks..keep blaming it on bush and the republicans..it has nothing to do with uaw workers making 50 buckas an hours while standing around scratching their butts..getting paid for not working..making poorly built crap automobiles..what is the largest selling automobile in this country today??..the ford f-150 pickup..and how much money did the government bail out ford with??..chrysler and government motors are years behing in quality and design..now the bert and ernie administration have spent billions of our tax dollars to prop up companies that should have been allowed to go bankrupt on their own..

"If you make a bad investment, you can lose your money. That's the way that it works."

If you buy bonds in a company and it goes into bankruptcy there are RULES AND LAWS that apply and have to be followed.

You can not just make it up as you go.

You have a BOND with that company and CONTRACT that must be observed. The FINE PRINT that can not simply be ALTERED at the whim of a politician ANY POLITICIAN.

Bankruptcy has RULES that are followed and are backed up by LAWS.

It could put the whole confidence of contracts into doubt.
THAT'S WHY CONTRACT LAW IS PART OF THE CONSTITUTION

The stupidity of some people is only eclipsed by their ignorance. Hey J.P. If Obama and congress didn't bail out Chrysler those teachers and police officers wouldn't be getting 29 cents on the dollar. They'd be getting nothing. By the way, where I'm from, teachers make an average of $75,000 a year, and they get full benefits while they work, and after they retire. Police officers make an average of $100,000 a year with full benefits while they work, and after they retire. So no one around here would be crying for these groups.

"restructuring plan pushed by the White House"

How scary is that.

Robin–Great point. The marriage between private sector and government is creepy and disgusting. Private companies fail... they fail. Oh well! If I get paid too much at my job, then my company makes less money. These union employees make way more than market value for their jobs. If companies overpay their people, they will not be able to compete. This is what happened to the car industry.
.King Obama doesn't get that.

What I would like to know is:

1 – If the company goes through liquidation, what would the bondholders get?

2 – What price did the bondholders pay in the first place? are they getting 29% of facve amount? how muhc of a discount did they buy the bonds with initially? Were they investment grade or junk-bond grade at the time of purchase?

If you make a bad investment, you can lose your money. That's the way that it works.

VL- Chicago June 8th, 2009 5:10 pm ET

Hey- "Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected!"
It's been 5 months, and King Obama has tripled the debt, smashed the constitution and nationalized businesses. Wake up and get a job, quit hoping for handouts.

The problem with America is we have 20% of the people that are lazy, dumb and want nanny govt. to help. I would suggest to go to school, don't have kids at 20, and work 2 jobs.

Oh, then read the story of the constitution.
---------------------------------
Read the Constitution? Where in the hell were you the last years? Tripled the debt? Your guy did that. Bush fanatics never cease to amaze me. He was a complete and utter failure and you can't stand the fact that Presdident Obama is more of a leader than Bush ever could be. You all disgust me.

It is really unfortunate that the State of Indiana is taking this action forward. Other than brand value, there are no substantial assets in Chrysler to pay off bond holders. The debt load is much too high and as a purchaser of junk bonds the Indiana pension fund managers knew very well that they were making a highly speculative investment. If they succeed in this action, the 29 cents on the dollar will be gone and virtually nothing will be recovered in liquidation after payment to all the lawyers, administrators and bankrupcy trustees. This could create a very bad day for every investor, vendor and worker associated with Chrysler when liquidating the minimal assets of this formerly great Company.

@ Roger

Your right on it !!

I guess the police and teachers unions in Indiana didn't give as much to the Obama election fund as the UAW union (not to be confused with the actual WORKERS of Chrysler and GM)

Remember when Obama was going to strong arm the bond holders to 'take the deal'

Turns out the bond holders were not all greedy stereotypical rich white men but POLICE retirees, TEACHER retirees and LITTLE OLD LADIES in Indiana whose bonds were a large part of their RETIREMENT FUNDS.

Turns out the rich vs poor Manufactured conflict is as phony and as it very well will be shown by the United States Supreme Court as illegal as the Manufactured ILLEGAL bankruptcy.

Use the same rules and laws as any other Bankruptcy!!!!!
Oh wait, where is the political capital to be gained from that.

I still find it funny that people think our econimic problems began 8 yrs ago. The economy was tanking when GW took office. He didn't cut taxes enough or any federal spending (increases ftl), so it was stalled for 8 yrs. Our economy ran great post WWII because our factories did not get bombed. Then we were fortunate enough to live off a silicon valley boom in the 80s (helped by cut taxes) and internet boom in the 90s. That internet boom also gave away our biggest advantage, knowledge. Now people around the world who care and want to work hard can surpass our lazy, government subsidized, fat asses.

If you want to fix the problem, go back to states rights and limited federal government, something neither party and their 40 yr congress terms with incentives from lobbyists are for.

Why? It's about the only thing that's made any sense in the US auto industry in years.. Downsizing cars leads to lower emissions you doofs.

Today Dana Bash on CNN says "Democrats need at least some Republican support in order to move their bill through Congress"

Also the GOP's "public plan puts gove between doctor and patient "

as if the ins co is not now "between doctor and patient"

She has noted the GOP idea that Gov plans are doomed to failure – and not noted that if that is the case why worry about the gov plan since it is not being imposed on anyone.

Now you report on Fiat – with no mention of Fiat's right to just go walking away from the agreements if this takes more than 10 days.

Why would anyone believe your reporting.

Enough–let it go under and then everyone gets nothing.

@Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected! June 8th, 2009 4:53 pm ET

Our auto industry- yet another of many casualties of this economic crisis caused by the inept leadership of Bush and the Republicans. Thank you!
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Since when is a President responsible for the actions of a private company? Private...i.e not government owned?

Why is Chrysler our problem, Chrysler is owned by private investors. The owner is "Cerberus" and this creepy cast of ghouls are the wealthiest private equity fund in the world! Guess who the CEO is at Cerberus, John Snow. John Snow was GW Bush's Treasury secretary, the guy who screwed the pooch with his inept management of economic oversight that led us here...Let Cerberus document a loss, let's make them pay up their fair share, their fair share is all of it.

The company is worth nothing since their stock holders let the white collar workers run the company into the ground. If Chrysler goes bankrupt with out help, they will not have honored WARRANTIES, and therefore, no one will buy even the clearance sale vehicles. It will NEVER escape from bankruptcy then. It will just die.

Sotomayor for teachers and Policemen being paid the full value of their money in chrysler cars.

Sotomayor wants everything for the teachers and Policemen or nothing. Sotomayor would rather the sale to the Italians stopped, or if it goes head anything made must go to the bondholders.

Alternatively, Let Chrysler produce their usual cars and Allow Bondholders to grab one or two Chrysler cars in exchnge for their debts, and whatever is left over goes to the shareholders.

All debtors must accept products for payment.

Have any Obamabots ever studied American history? it's called checks and balances...equal branches of power....ring a bell??
Also, IT WAS JUSTICE GINSBURG that gave this ruling...the biggest liberal on the court. She is a liberal but still a follower of the constitution. The answer is and always should be less federal power, less taxes and more states and local rights. Wake up and shake out of your Bush hate and Obama worship and review each piece of legislation!

'The court is going to allow failure of Chrysler and thousands of jobs for one group? Don't the judges know what's on in the country?'

Let it be a typical LEGAL, CONSTITUTIONAL bankruptcy not a manufactured ILLEGAL one!!!!

We live under laws not the 'insight' of the executive branch of the U.S. Govt.
Those teachers and police retires whose pensions are based on Chrysler bonds in Indiana are just greedy irrational troublemakers.

Court and Law 1 Obummer 0

I love the hateful Obamabots, they're so pathetic! They're so mindless and stupid that "blame Bush" is a knee jerk reaction. *LOL* Yes, it's never you fault. Bush did everything! *LOL*

This one's all on Obama's plate and it's 100% his fault. This is going to end with liquidity, which is should've all along. I'm glad that the Supreme Court told Obama to shove it where the sun don't shine. That's what he gets for trying to tell the Supreme Court what to do. Between this and the Don't-Ask-Don't-Tell case, that's two Supreme Courts matters in one day that Obama has tried to tell them what to do.

Yeah, those rotten police officers, teachers, and little old ladies...how dare they! Who do they think they are, trying to get a fair deal when that might keep UAW workers from retiring with full pay and benefits at 50!

1. I agree with the debt holders, they have right to more share ownership in exchange for their debt paper.

2. The Union has NO standing to receive ANY shares in the new post-bankruptcy company. This is a Union Rip off.

3. I also do not think that merging with Fiat is the only option for survival. A good management team that can hold down executive pay (max $750K/year) along with a reasonable Union that acknowledges that pay, pension and health benefits all need to be cut 15 to 20% across the board could save Chrysler and keep manufacturing jobs in the US. Think about it!

4. The US government has to STOP give taxpayer money to these companies. They can survive on their own but will probably be 60% of their current size which will be similar in size to many other successful car companies.

Do you think that the wokring class might get a ruling in their favor? How will Abomination explain to the UAW that some of the money will be paid to the retirement funds for widows and orphans?

Funny how many liberals were in the congress who backed all these messes over the past 8 years and now waste time trying to blame it all on the conservatives instead of trying to come up with ways to fix it without spending the US into incredibly deep debt. Blame it all on Bush if you like but the blame lies equally to both sides of the aisle. Throwing more money at the problems don't make the problems go away. Thank God, Ruth Ginsberg is looking at things with an open mind and is questioning whether it's fair for the dealers to go into bankruptcy while the parent company of Chrysler walk away with a sweet deal. All you haters out there need to open your minds and try to see things fairly instead of just the way you want to see it. You spend all your time jumping all over the blogs , wasting hatred on the conservatives and you pay little attention to the news stories that really affect all Americans and you don't have sense enough to comment on the things that really matter. I feel sorry for you that you have to live with so much hatred inside.

I will NEVER buy a another GM or Chrylser. What a fool I was to believe I was actually supporting America in the first place.

So bring on the Chinese cars..., might as well hurry the inevitable by sending my dollars straight to the horses mouth.

We have bankruptcy laws, even the libs on the high court will have a hard time not seeing through this. The secured creditors should get 100% of there money. The UAW should have to take big big cuts in orded to see the creditors get there money.

Hey- "Lori reminds the GOP that Clinton and Bush had lower approval ratings than Obama and BOTH got re-elected!"
It's been 5 months, and King Obama has tripled the debt, smashed the constitution and nationalized businesses. Wake up and get a job, quit hoping for handouts.

The problem with America is we have 20% of the people that are lazy, dumb and want nanny govt. to help. I would suggest to go to school, don't have kids at 20, and work 2 jobs.

Oh, then read the story of the constitution.

I hope that Fiat pulls out of the acquisition. This would cause a fire sale for all of Chrysler's assets; whereby, Fiat could come back later, pay less for them than they would now and these greedy bondholders will get even less or nothing.

Of course, the taxpayer would be off the hook for any additional funding. We've already flushed too much money down the Chrysler toilet.

The court is going to allow failure of Chrysler and thousands of jobs for one group? Don't the judges know what's on in the country?

'The Supreme Court needs to keep out of this. Do they want Chrysler to completely go into bankruptcy and not receive a dime, that's the next step. It is better to have something than to be greedy…………. If you get a larger share it is just more of the American taxpayer dollars!'

That's right, just as when FDR and Harry Truman when they had supreme court fights over similar cases and they won.

Oh wait, no, they didn't win their cases before their supreme courts.

It turns out the executive branch of the govt doesn't have the power to do many of the things it is trying to do with GM and Chrysler.
Such a pity when the constitution and the laws of the United States get in the way.
Turns out the executive branch of the govt isn't as powerful as Obama thinks they are.
Those annoying laws, that pesky constitution and the legal precedents of at least two former supreme court decisions are so annoying.

Hey all you Bondholders of Chrysler debt. You are getting .29 cents on the dollar but if the Supreme Court causes the Fiat deal to go south and they pull out then the end results will be the liquidation of Chrysler and you get even less and maybe nothing.

You and the money minded people have only an interest in your own profits. That is what they are paid to have an interest in and I have no problem with that but when a company goes into Bankruptcy, the Bankruptcy Judge has control over who gets what in the reorganization or liquidation and now you have sent the message that the Judge no longer has the power to make decisions. This will be detrimental to our system. Your firms made an investment that carried risk. You took a chance and lost. It is terrible and sad but what you are doing now is insuring that more will be lost than money. Jobs and livelihoods will be lost because you are going to cause the liquidation of the company and at the same time your 29 cents will probably drop to zero or 5 cents on the dollar. Remember the golden rule. IF YOU CANNOT AFFORD TO RISK OF LOSING THE INVESTMENT THEN YOU DO NOT NEED TO MAKE IT.

DEPRESSION IS COMING BY 2011. GET READY FOLKS.

Does Obama have an Answer to:

1. How to create Manufacturing Jobs.
2. How to rebuild our Auto industries.
3. How to end the wars.
4. How to export more than imports.
5. How to rebuild textile and steel industries.
6. How to regulate Banking.

We are in a RECESSION and We will have a DEPRESSION which is coming soon by 2010 or 2011.

I think it is funny that the GOP is using the treasurer of Indiana to do the dirty work of trying to block this deal. The GOP does not care if millions of more people are out of work. The GOP only cares about the rich and big corporations. If the GOP were stimulating the ecoomy it would have been 787 bilios in tax breaks for rich people. Just like they will never back a reform of the healthcare system because their base of rich people and big insurance companies will ever allow it to happen. The GOP wants us to live in a country that is the Christian version of Iran. The GOP wats us to be uneducated, have no jobs, no hope and live in fear. Beside most of the people on welfare are Republicans no matter the lies Fox News, Rush or Hannity tells us..

Why. Your in deep trouble.

let's just say the surpreme court is just being greedy!!!...just like justice Roberts; always demanding for higher pay and now demanding for a higher sales price from FIAT.

maybe they can sell it to the chinese...bush & his lackeys in the supreme court – roberts, alito – has alot of cronies in china and that's why GW went to the Olympics & danced his behind off!

Its like who cares about the secured creditors or investors? This is exactly why I will not invest in companies with large union participation. They are horrific investments. Let it go thats fine. My company buys 8-12 trucks every three years and we sure won't buy Chrysler or GM anymore. Toyota and Ford make fine vehicles and even better are not majority owned by the government.

Can the Obamabots quit evoking Bush's name. It's moronic. This is a stand alone situation that Obama has made happen. He has taken ownership of our car industry and given most of it to his political backers. Forget being a dem or a repub and trying be fair.
Who said "We can't let the car companies go bankrupt!" -Candidate Barack Obama, several times on the trail. Well, he made it happen, so he could own it and give part to his friends.

But Obamabots continue cheer and bow to King Obama!!

Our industries can be saved only if:

1. We buy Made in USA.
2. We learn to live within our means.
3. No more Made in China.
4. Stop all this Capitalism vs. Socialism Hypocrisy and Non-Sense and
5. We need to be Self-Dependant and Self-Reliant

Finally, the equal branches of govt. stepping in to stop this tyrant Obama!! You can't just own companies Mr. President. Isn't politics as usual screwing some to benefit your backers (like the UNIONS!). Obama is trying screw bondholders (seniors, investors, middle class...) out of their savings and reward your political friends. That "isn't more of the same" IT'S WORSE.

I thought that old biddy was in the hospital!

Another example of the rich not giving a darn about what happens to hundreds of thousands of working people who gave up a lot in order to make this deal happen.

It is people like you, JP, that landed us in the mess in the first place.

Wonder why this is in the political ticker?! – CNN is seeing everything through the prism of politics these just to stay afloat with their garbage news!

Wonder when CNN will be filing for bankruptcy...with their stale news and ratings in the tank, they should be next!

There seems to be two options. Let Chrysler sell to Fiat, it will survive and the bondholders will at least get something. Block the sale, Chrysler will fail and the bondholders get nothing. Are the people spearheading this lawsuit Republicans? Obviously the teachers and police officers will be both Democrats and Republicans, but what about those in charge of their assets? Just wondering.

Hey, JP, buddy, you've stolen my moniker.

Our auto industry- yet another of many casualties of this economic crisis caused by the inept leadership of Bush and the Republicans. Thank you!

Yes, how DARE those bond holders actually demand to receive more than 29 cents on the dollar! What eeeevil greed from those eeeevil police officers and teachers who hoped to retire one day!

I'm telling you, Obama's bumbling economically-illiterate maneuvers are going to drag him down in flames before the 2010 elections. It's going to happen and it's going to happen FAST. It's going to be a flaming, flaming burnout of historic proportions.

Obama is going to make Carter look effective by way of comparison.

Let Chrysler go. They make a crappy product.

If they can't make it on their own, let them go. GM too.

So it's ok to sell the Hummer to the Chinese but not Chrysler to the Italians?

The greedy pigs at the UAW were the single largest reason Chryster went bankrupt. Then the UAW got its bought and paid for president to give them a sweet deal they never deserved. The unions destroy the industries they work in.

They voted for Bush eight years ago, what should we expect from them.

Doh! Rut-row Raggie!

Bad news for Obama, the New CEO of GM and Chrysler.

The Supreme Court needs to keep out of this. Do they want Chrysler to completely go into bankruptcy and not receive a dime, that's the next step. It is better to have something than to be greedy............. If you get a larger share it is just more of the American taxpayer dollars!

I wonder where Judge Sotomayor stands on this issue.