Supreme Court to Obama: “What Constitution?”

2009 June 9
by justrand

The Supreme Court just announced they won’t block the Chrysler sale on the basis of any of those pesky “Constitutional issues”.  Uck!

warning…Anecdote!

Once upon a time I worked for the largest Savings & Loan in America (ok, the world).  This company employed tens of thousands of people!  They had “assets” in excess of 45 BILLION dollars!  Of the 30,000 or so people that worked for them and managed the ebb and flow of those $45 billion, there were FIVE people who were the “Fund Managers”.

“Fund Managers”?  These FIVE humans were the ACTUAL engine of the company!  They took the “assets” of the company and leveraged them…by INVESTING!  They were REALLY good…and made this S&L lots of money!

All companies with large amounts of cash have little groups of people who control those large amounts of cash!  And TOMORROW those people are going to go to work and start PULLING BACK all their company’s assets!

Obama and the Supreme Court just punched a GAPING HOLE in the “gas tank” of America.

34 Responses leave one →
  1. 2009 June 9 7:20 pm
    [1]
    justrand permalink

    OK, my thread and I’m commenting on it…go figure!

    I am beyond pissed! Not only did the SCOTUS just tacitly approve the trashing of 230 years of legal precedant regarding bankruptcy, they just sent a message to every investor in the WORLD that America is a RIGGED GAME!

  2. 2009 June 9 7:21 pm
    [2]
    bc3b permalink

    Justrand –

    Please don’t tell me you are surprised.

    By the way, the jobs lost by closed Chrysler and GM dealerships will be approximately the same as the number of GM and Chrysler have in the U.S.

  3. 2009 June 9 7:26 pm
    [3]
    bc3b permalink

    For at least 10 years, as part of it’s Five Star Dealer Program, Chrysler has forced dealers to invest millions to improve their dealerships (facilities, diagnostic systems, etc.). Many dealers either built new facilities or made major improvements to existing facilities only to have their franchise agreements terminated. I feel worse for them than the investors. What can you use a dealership for if you don’t have a franchise? Usually they are too large to serve as independent repair shops or used car stores.

    Losing franchises will force many into bankruptcy.

  4. 2009 June 9 7:33 pm
    [4]
    chekote permalink

    Justrand

    Why are you soooo surprised? These are the same people who handed down the Kelo decision. I mean once private property is out the window it is pretty much OVER.

  5. 2009 June 9 7:37 pm
    [5]
    JustMary permalink

    Surprised and pi$$ed off are two different things.

  6. 2009 June 9 7:40 pm
    [6]
    MFG permalink

    The ramifications of this for debt securities are as of yet unappreciated

    The Supreme Court has basically ruled that there is no such thing as secured debt, and no such thing as a secured creditor

    It’s a stunning act of despotism

    Who will loan to any of Obama’s friends now, when lenders know that their formerly legally enforceable claim to be repaid can be wiped away by a wave of the Mighty One’s hand?

  7. 2009 June 9 7:47 pm
    [7]
    MFG permalink

    You would have to LITERALLY be a lunatic to invest in corporate debt from the new GM or Chrysler companies since anytime he feels like it Captain Bullshit can simply steal your principal

  8. 2009 June 9 7:48 pm
    [8]
    MFG permalink

    How long before CA General Obligation bonds are defaulted upon “for the children”?

  9. 2009 June 9 7:48 pm
    [9]
    JustMary permalink

    ….and there you have it, MFG.

  10. 2009 June 9 7:48 pm
    [10]
    justrand permalink

    MFG: “Who will loan to any of Obama’s friends now, when lenders know that their formerly legally enforceable claim to be repaid can be wiped away by a wave of the Mighty One’s hand?”

    What HE said!

    Putting aside the utter ILLEGALITY of it…it is so economically INSANE!

  11. 2009 June 9 7:53 pm
    [11]
    justrand permalink

    MFG’s on a roll…I’ll just copy his stuff: “You would have to LITERALLY be a lunatic to invest in corporate debt from the new GM or Chrysler companies since anytime he feels like it Captain Bullshit can simply steal your principal”

    Again…what HE said!

    Which means no one WILL invest in them…so the U.S. Taxpayers will “get” to!

  12. 2009 June 9 7:58 pm
    [12]
    JustMary permalink

    Which means no one WILL invest in them…so the U.S. Taxpayers will “get” to!

    Hooray! Obama sure is swell! First he “lets” me wear my hijab….now this?

  13. 2009 June 9 8:05 pm
    [13]
    gnqanq permalink

    Justrand – how much foreign money is going to be leaving our shores?

    Because of our laws (rule of law), us being the most free (use to be) and the ability to defend ourselves – foreign investors could feel secured that their money and investments were secured. Not any more.

    Add in what is going to happen to our dollar – inflation anyone. There was a congressman on Greta’s program who said that privately the Chinese are worried. They are buying large amounts of oil, gold and other commodities. A hedge against inflation maybe?

    My recommendation – buy food.

  14. 2009 June 9 8:06 pm
    [14]
    chekote permalink

    It’s a stunning act of despotism

    Nothing new. The judiciary has been acting like despots for decades now. Congress hasn’t had the guts to take them on. Term limits for judges!

  15. 2009 June 9 8:07 pm
    [15]
    justrand permalink

    I’d re-copy MFG’s splendid comments but what’s the point?

    I truly consider this a body-blow to the U.S. on Constitutional AND Economic terms. Like the crack in a dam that slowly spreads the damage has been done…it’s only a matter of time!

  16. 2009 June 9 8:10 pm
    [16]
    justrand permalink

    chekote…this is not even the “judiciary acting like despots”…this is the SCOTUS justices spreading their legs!!

    At some point the Rubicon gets crossed…and this is looking like a VERY good candidate!

  17. 2009 June 9 8:10 pm
    [17]
    JustMary permalink

    My recommendation – buy food.

    …..and TP

  18. 2009 June 9 8:13 pm
    [18]
    justrand permalink

    silver and gold…ammo…food…TP

    hard assets!

  19. 2009 June 9 8:15 pm
    [19]
    JustMary permalink

    Bottles of whiskey might not be so bad either. Even if you don’t drink it. 😉 It all trades.

  20. 2009 June 9 8:20 pm
    [20]
    justrand permalink

    *sigh* I’d drink it! 🙂

  21. 2009 June 9 8:24 pm
    [21]
    drdog09 permalink

    One of the first impacts of this non-decision will be the health care system. Why buy bonds in say Kaiser, GE or any of the large medical institutions? They are next on the list and SCOTUS just said its ok.

    Silver lining side affect — GE, Immelt have just seen 1/8 of their corp just melt. The medical services unit might as well fold up shop.

    Argentina here we come!!

  22. 2009 June 9 8:34 pm
    [22]
    gnqanq permalink

    Dr Dog – I was listening to Glen Beck this morning. He was talking about the Health Care bill. According to what he read, Insurance Companies will not be able to discriminate costs based on pre-existing conditions or life style. Thus if you are healthy and live a healthy lifestyle, you will get charged the same amount as a drug using active homo sexual in San Fran. Plus they government will be able to dictate what you can charge.

    What insurance company will be still offering health insurance after this pos gets passed and signed. The only insurance will be what the government offers – hello VA.

    How many tens of thousands will be unemployed due to this?

  23. 2009 June 9 8:37 pm
    [23]
    JustMary permalink

    How many tens of thousands will be unemployed due to this?

    How many tens of thousands will be “too expensive” to let live because of this?

  24. 2009 June 9 8:43 pm
    [24]
    bc3b permalink

    It appears that a larger segment of the “workforce” will be comprised of government employees.

    Lou Dobbs had an interesring study a few weeks back. When benefits, pensions, etc. are taken into account, the average federal employee costs slightly more than twice a year than a private sector employee.

    When conpanies run a deficits, there are layoffs and salaries and benefits are cut. When the fed runs a deficit, same old, same old.

  25. 2009 June 9 8:48 pm
    [25]
    gnqanq permalink

    JustMary – that comes down the road shortly when they find out it is too expensive. It is one way to reduce future entitlements to the elderly.

    http://blogs.tnr.com/tnr/blogs/the_treatment/archive/2009/04/29/obama-starts-a-grown-up-discussion-of-health-care.aspx

    OBAMA: …I actually think that the tougher issue around medical care — it’s a related one — is what you do around things like end-of-life care–

    LEONHARDT: Yes, where it’s $20,000 for an extra week of life.

    OBAMA: Exactly. And I just recently went through this. I mean, I’ve told this story, maybe not publicly, but when my grandmother got very ill during the campaign, she got cancer; it was determined to be terminal. And about two or three weeks after her diagnosis she fell, broke her hip. It was determined that she might have had a mild stroke, which is what had precipitated the fall.

    So now she’s in the hospital, and the doctor says, Look, you’ve got about–maybe you have three months, maybe you have six months, maybe you have nine months to live. Because of the weakness of your heart, if you have an operation on your hip there are certain risks that–you know, your heart can’t take it. On the other hand, if you just sit there with your hip like this, you’re just going to waste away and your quality of life will be terrible.

    And she elected to get the hip replacement and was fine for about two weeks after the hip replacement, and then suddenly just–you know, things fell apart.

    I don’t know how much that hip replacement cost. I would have paid out of pocket for that hip replacement just because she’s my grandmother. Whether, sort of in the aggregate, society making those decisions to give my grandmother, or everybody else’s aging grandparents or parents, a hip replacement when they’re terminally ill is a sustainable model, is a very difficult question. If somebody told me that my grandmother couldn’t have a hip replacement and she had to lie there in misery in the waning days of her life–that would be pretty upsetting.

    LEONHARDT: And it’s going to be hard for people who don’t have the option of paying for it.

    OBAMA: So that’s where I think you just get into some very difficult moral issues. But that’s also a huge driver of cost, right?

    I mean, the chronically ill and those toward the end of their lives are accounting for potentially 80 percent of the total health care bill out here.

    LEONHARDT: So how do you — how do we deal with it?

    OBAMA: Well, I think that there is going to have to be a conversation that is guided by doctors, scientists, ethicists. And then there is going to have to be a very difficult democratic conversation that takes place. It is very difficult to imagine the country making those decisions just through the normal political channels. And that’s part of why you have to have some independent group that can give you guidance. It’s not determinative, but I think has to be able to give you some guidance. And that’s part of what I suspect you’ll see emerging out of the various health care conversations that are taking place on the Hill right now.

  26. 2009 June 9 8:52 pm
    [26]
    drdog09 permalink

    GN,

    What you suggest will happen in a flash. When the big companies see that they have the chance to dump their health obligations to the govt, they will do so.

  27. 2009 June 9 8:55 pm
    [27]
    JustMary permalink

    *sigh* Yeah.

  28. 2009 June 9 8:57 pm
    [28]
    MFG permalink

    You’re an institutional investor, you have $100,000,000 to invest, what do you do?

    Bonds? Obama steals your principal
    Treasury securities? Obama destroys your principal through inflation
    Stocks? Very risky
    Real estate? Are you kidding me?
    What do you do…???

  29. 2009 June 9 8:58 pm
    [29]
    chekote permalink

    Lately, I have been thinking that since this country is determined to become European like I might as well move back to Italy. Better food there. Certainly better wine. Plus, you can drive to France, Spain, Germany in about the same time it takes to get out of Texas.

  30. 2009 June 9 9:06 pm
    [30]
    gnqanq permalink

    dr dog – I remember earlier last year when the auto makers were behind national health care. The reason is what you stated. They plan to dump their current employees and retirees. Cheaper to pay the government rate vs what they are currently paying.

    Going to be a lot of pissed people when they figure out they have been had.

    Chekote – stick around. This is going to get real interesting. With all of those guns out there and the tension mounting. Something is going to break and it wont be pretty.

  31. 2009 June 9 9:12 pm
    [31]
    drdog09 permalink

    MFG,

    I’d be looking overseas for investments.

  32. 2009 June 9 9:30 pm
    [32]
    blakeney permalink

    I have a feeling that even too much to drink will not be enough.

  33. 2009 June 9 9:58 pm
    [33]
    conservativetony permalink

    Ok guys, there’s too much doom and gloom going on around.

    The silver lining in an Obama Presidency. 10 items to brighten up your day.

    1. The Senate sees what this Supreme Court just allowed and imagines that adding Sotomayor couldn’t make it any worse. No debate needed. On to CIR.

    2. The big money is gone. Probably end up hurting Democrats campaign coffers more than Republicans as they donate in larger chunks.

    3. I hear the pace of illegal immigration has slowed. Obama has forced Americans into taking jobs even Americans won’t do.

    4. We’re driving less, and less fuel demand is keeping prices relatively low. Nobody’s buying cars anyway.

    5. Americans no longer have to worry about choosing through a miriad of investments, nor choose which bank keep their money in. Nobody has any.

    6. A friend told me how simple is to get her weekly unemployment benefits. “I just go online and in a minute or so I’m done.” We can only hope the gov’t made it that easy for everybody else.

    7. Truthfully, when was the last time any of us were told we were killing the planet by not buying those $10.00 enviro-wacko lights?

    8. Is ammunition still hard to find? You guys ought to be thankful. I hear the stuff is really heavy.

    9. Cash. See #8

    10. Nobody has to worry about those pesky raises. Don’t you guys hate it when you’re at the butt end of a tax bracket and your schmuck supervisor wants to put you over the line?

  34. 2009 June 9 11:02 pm
    [34]
    BCL permalink

    Lately, I have been thinking that since this country is determined to become European like I might as well move back to Italy. Better food there. Certainly better wine. Plus, you can drive to France, Spain, Germany in about the same time it takes to get out of Texas.

    🙂

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