“The American people will never knowingly adopt Socialism. But under the name of ‘liberalism’ they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened.”

Socialist Party presidential candidate Norman Thomas

Tuesday, June 09, 2009

Not so fast, Chosen One

Justice Ruth Bader Ginsberg put the brakes on Obama's law-skirting regarding the Chrysler bankruptcy. See, under long-standing federal and Delaware law(Chrysler is incorporated in Delaware), when a company declares bankruptcy, it must abide by applicable federal and state laws. Under those laws, there is a hierarchy of payoffs to creditors that take place as the company liquidates assets. First the bond-holders get paid off at 100cents on the dollar, then come the preferred stockholders followed by the common stock holders. By royal decree apparently, Obama gave the UAW(who are not bond-holders) 54cents on the dollar for their 10% investment, but gave the bond-holders only 27cents on the dollar for their 20% original share. Who besides the main-stream media doesn't see an obvious, political payoff to the unions here?

Thankfully, some of the bond-holders had the guts to stand up to The One's rail-roading of them and the law. Ginsberg has 24 hours from yesterday to decide whether she'll let the Court hear this case. If she allows it, it'll be the first time anybody has dared slow down Obama's transformation of the country, and a delightful smack-down of Obama's belief that he is above the law. That is was the Court's most liberal justice is icing on the cake.

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