I find piece of developing news to be interesting. Detroit’s bankruptcy was challenged from every direction by liberals and unions alike. They just couldn’t find the justice in Detroit filing bankruptcy which put ill-gotten pensions and benefits at risk.
Well... it is of no surprise to those of us who have actually read the constitution that state laws do not trump section 8 provisions which ‘specifically innumerate’ bankruptcy law as a federal domain:
“To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States”
As part of the process, the court ordered the city to prove that it had made a good faith effort to negotiate a way out. Of course after finding out that the constitution still has some impact in our world, unions and workers claimed that they were unfairly represented in the process.... I certainly didn’t here unions unit behind bond holder claims that they were unfairly represented and treated in the Chrysler deal.
So when unions and public sector workers push the value of their services above that which the real economy can support, don’t be surprised when federal bankruptcy renders your state constitutional protection invalid.
Interestingly enough this has grave implications for Chicago workers who seem to think that taxing people to death is the answer. Seems that government there have decided to do just that... Hummm... one but wonders where all the capital investment in Detroit went. Companies, wealth and the highly educated are evacuating Chi Town as we speak.
This is all kind of a backhanded twist to the liberals who, because it was convenient to their position, wanted states rights to trump the federal... but then again, they don’t much care for the constitution either... except when it suits them.
Ok Chrysler at the time of it's demise was a privately held company. Cerberus capital paid 7.4 B for 80%of the company in 2007. It should have never been bailed out by the government in the first place. Does the government bail you out of every bad investment you've ever made? No they do not. Cerberus Capital was more then happy to get government help to unload Chrysler onto anybody. Cerberus had almost 1/2 of it's capital invested in this sinking ship. You think they cared how they got rid of it?
ReplyDeleteYour preachin to the choir on this issue my friend.... I'm just saying that it was a government initiative to bail out the auto industry in the first place and it was the government that bastardized the bankruptcy proceedings to the subordinate creditors preference over the superior bond holders.... The bail outs for the auto industry and banks were NEVER my choice...
DeleteAs for unions yes I agree that they have been their own worst enemy. They want to much and do to little especially in the public sector.
ReplyDeleteSeems to me that they have already done too much in the public sector....
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