Let’s Party Like It’s 1929!
By Rich Galen
As if the “Recovery Summer” charade weren’t embarrassment enough for the Obama administration, there came the announcement on Wednesday that the recession had actually ended in June 2009. Still more excellent economic news from the Obama White House: Larry Summers will be leaving his post as director of the National Economic Council. And speaking of people we hope never to see again, Jimmy Carter was featured on CBS’ 60 Minutes last Sunday and renewed the nation’s negative opinion of him.

The Delphi Disaster: An Economic Horror Story Obama Won’t Tell
By Michelle Malkin
As Washington rushed to nationalize the U.S. auto industry with $80 billion in taxpayer “rescue” funds, the White House schemed with Big Labor bosses to preserve UAW members’ costly pension funds by shafting their nonunion counterparts. Nonunion pensioners who devoted decades of their lives as secretaries, technicians, engineers and sales employees at Delphi/GM lost all of their health and life insurance benefits. The Delphi workers sued and will have their day in court on Sept. 24. They are not asking for a bailout. They are simply asking for fair treatment under the rule of law.

 

Investors and funds are filing motions left and right to stop the transfer of any assets to Chrysler… at least until the company ponies up $6.9 billion in assets to cover their debt obligations.

This thing is already a mess!

The gurus in Washington say that the Chrysler bankruptcy is prepackaged, and it’s going to be fast and easy. Yeah, right. Beware hubris. Like the previous administration thought that the Iraq war was going to be fast and easy.

I practice bankruptcy law, said a friend of mine, and is there a courtroom anywhere in this land that’s big enough to hold all the players in a Chrysler bankruptcy? It’s the first ‘big’ automobile bankruptcy in the U.S. since Studebaker in 1933. There’s no recipe book for doing this. The judge in the case might just have to book Madison Square Garden to have enough space for all the participants. And everyone is entitled to their day in court. Considering the tens of billions of dollars in play, I expect we’ll see many days in court, up to and including the U.S. Supreme Court. That should take only a few years.

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