The Rule of Law is Finished in the US
By bobmnu
@bobmnu (8157)
United States
April 29, 2009 11:03am CST
With what has happened the past few days and some before then I am convinced that the Law Means nothing to President Obama and his Administration. They fully believe that they won the election and can do anything they want. Here are just a few examples:
1. Congress passes a la allowing for AIG Exec to receive their Bonus. President Obama and his team turns around and says no and the media and politicians beat them (AIG Exec) into submission.
2. TARP funds are used to buy preferred stock in Banks with the requirement that the Banks are to buy it back when they are able. Bank of America was a sound bank but forced by the government to buy Morgan Stanly, a decision that should have been made by the Share Holders,When the government announced this the Exec bailed with their golden chutes and BOA was left holding the empty bag. Now the President and his team are saying that they are going to trade the preferred stock (non voting) for common stock (voting). The government will not let the Banks buy back the Stock like was agreed to.
3. The Government loaned GM several billion. Now GM has come up with a plan, helped by the Car Czar, in which the government takes 50% ownership in GM for the loan and future loans, the Union gets 35% for taking stock to fund their Health and pension fund. The Bond Holders will get 10% equity in the company. According to Contract Law you pay the Bond Holders first based upon the oldest creditors first and the later ones the Government and the Union Last.
4. The Government is forcing banks to rewrite Mortgage contracts for people who are bad credit risks and normally would not get a loan. People who have been paying and now have fallen on hard times get nothing.
What is happening when people and companies who make bad decisions and keep making bad decisions are bailed out by the government and the ones who make good decisions are being left to pay the bill. What next, because I have a 4 bedroom home and there are homeless people do I have to take in 3 families to fill my Bedrooms?
1 response
@mschellemi (95)
• Philippines
29 Apr 09
as the saying goes: for every rule there is an exception. there are things that people should consider and sacrifice if they want their country to gain the success it used to have. sometimes you need to trust the government and cooperate for you to both gain benefits in the future. give your government the chance to prove their worth, and if they not succeed at the end help the government in your own little way. you see, you are still very blessed to have a home.
@bobmnu (8157)
• United States
29 Apr 09
What about those people who had GM Bonds to fund their retirement? They would no longer get monthly payments (interest). They loaned GM money before the Government and now the government steps to the head of the line and takes control. The Union which had no sanding now controls 30% of the company.
To put it other terms: You (Bond Holder) loan money to a friend (GM) to build a house. The friend uses the money to pay the contractor (union) to build the house. The House costs more to build so your friend goes to the Bank and explains his situation. The Bank (Government) agrees to loan the money but tells your friend that they will take over the building project and the contractor will also have a say in how the house will be built in lue of what what had been promised him in the future. The contractor will still be paid for the work he is doing. You friend has to agree to give you a say in building the house in exchange for what your friends owes you. You are out your money (close to 1/2 of what is needed to build the house), but you now have a say in the type of house your friend will build. You who loaned the most money will be out your money and all you get is the right to pick the color of the house. You friend will have to settle for what ever house he Bank and the Contractor decide to build.
GM Should have gone bankrupt and then reorganized from there. That is what the Airlines had to do and they returned stronger than before, except a few that went out of business.
