Bailout Watch 555: Supreme Court Gives Fiatsler Thumbs Up

John Horner
by John Horner

After a short, suspense filled couple of laps under the yellow, the US Supreme Court has dropped the green flag on the Chrysler-Fiat deal. The New York Times sums up the court’s view that “the Indiana funds ‘have not carried the burden’ of proving that the Supreme Court needed to intervene.” Also, earlier today, the Chrysler dealer slaughter was also given the go ahead when Judge Gonzalez approved that aspect of the deal. So, that pretty much closes this chapter of the saga. The deal is going down as planned by Fiat and the US Treasury. Now the really hard part begins.

John Horner
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  • Jesse Jesse on Jun 10, 2009

    Why do you keep calling him Psych 101? Pretty sure it's PCH101. As in Pacific Coast Highway 101. Or California route 101. You know, that highway in California that everyone likes to film car commercials on?

  • RetardedSparks RetardedSparks on Jun 10, 2009

    windswords: Was Rennissan a merger of equals? (I don't recall the context). If so, it explains the success of that venture. One could have lots of humorous arguments over who is less competent - Fiat or Chrysler - but from a financial POV this is a take-over, not a merger. It will be very hard for Fiat to get past the idea that Chrysler is a load of bumbling idiots. I agree with you that would be bad. There are no doubt a ton of talented people in that company, just not the 100 or so at the top. If Fiat can take advantage of what Chrysler does well - trucks, minivans, and retro muscle cars - they will be smart.

  • Fallout11 Fallout11 on Jun 11, 2009

    I have to agree with menno, sorry Pch101. The ‘rule of law’ here in the good ol’ America has been replaced with the ‘tyranny of good intentions’. The problem with politicians, whether Democrats or Republicans, is that when the law doesn’t suit their objectives, they simply disregard it or try to find a way around the intent and spirit of the law. The Obama Administration chose to abrogate contract law and the entire bankruptcy process in the Chrysler (and soon to be GM) Chapter 11 proceedings. So what is the takeaway? Is the rule of law important to politicians all of the time or only when it suits their provincial interests? The evidence to date generally suggests the latter. In a way, it is startling that the Chrysler case had to end up before the Supreme Court because the lower courts lacked the fortitude to seriously tackle the obvious legal injustices being perpetuated. So what about US Treasuries? This administration has now demonstrated that it has no respect for the contractual obligations entered into by others — and the Supremes have decided that it’s expedient not to stand in their way. Does that make you more or less confident that the government will stand behind its own debt obligations? How do you think it makes the Chinese and Europeans feel about that? I know how I feel about it…..Sold to you!

  • Menno Menno on Jun 11, 2009

    Oh, right, Jesse. For some reason, I think "psych 101" (first level of college courses in psychology) when I see his name - having never been to California, PCH101 wouldn't make any sense to me until it's explained. Thanks. I'll try to type his onscreen name right. Oh by the way, PCH101? And other doubters of what I've been saying about this all? Take a lookie-lou here. http://www.infowars.com/russia-may-swap-some-us-treasuries-for-imf-debt/ And here. http://www.guardian.co.uk/business/2009/jun/10/oil-market-reserves Now, you have to understand the idea that as the US dollar collapses in value (due to non-support by other nations in lending which will result in the Fed simply cranking out more dollars out of thin are, deprecating the ones in existance) also plays into the perceived future $250 per barrel of oil scenario. What is REALLY going to be scary is the story/rumor I read yesterday about oil producing countries mulling the idea of only accepting GOLD for OIL. Which would mean that before long, what little gold is probably left in Ft Knox would be in the hands of our enemies, and eventually, we americans would have to try to get-by on 1/3 of our current energy needs. Here's a newsflash if that happens: we won't have much fuel for transportation by car because we'll need much of it to produce food and transport it. We'll end up, in the worst case scenario, as a 3rd world, hyperinflation nation with no trade partners, barely able to feed ourselves. Auto industry? What auto industry? We'll end up as a big version of Cuba. Maybe the Israelis, South Koreans and Japanese will take some small pity on us and actually send us a few heavy goods vehicles now and again to keep our food moving. (Israel actually has military truck factories which could be used for production of a few farm trucks).

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