Official Obama Derangement Syndrome Blog

Obama Exposure

June 2, 2009 at 7:20 am

Obama Banana Republic-No Longer “A Matter of Law”

» by ODS Expositor in: -Auto Industry, -Nationalization, Obama Policies

From INVESTOR’S BUSINESS DAILY: “A Matter Of Law”

Excepts from the article:

With General Motors’ long-awaited "pre-packaged bankruptcy" finally here, America is on the verge of a new era — one where government, not investors and consumers, is the final arbiter of success.

GM’s bankruptcy pushes bondholders aside in favor of the U.S. government and the UAW. Though bondholders hold $27 billion in debt, they’ll get just 10% of stock.

… So the government, with roughly two times what private bondholders have on the table, gets a stake five times bigger. And the union, with about a third as much "invested," gets a 70% bigger stake. Even the Canadian government, with its $9.5 billion "invested," ends up with 12%.

They call it "restructuring." We call it theft. Never in our memory has there been a more thorough, systematic effort to disenfranchise the shareholders and bondholders of a major American firm.

It will make investors — domestic and foreign alike — think twice about investing in an American stock or bond in the coming years. Why invest if your money and rights as an investor can be arbitrarily stripped from you, as they were in GM’s case?

ODS Expositor: Welcome investors to the new Obama Banana Republic of America! No longer ruled by law but by political favors and agenda. Please make your checks out to the ‘Democratic’ Party of Obama.