Thread: Six years past.
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Old 05-14-2015, 01:08 PM   #9
XDCX
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Join Date: Nov 2007
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Quote:
Originally Posted by DealerEx View Post
When I start to explain that it wasn't the credit crunch that put them out of business, but our own government and the manufacturers, in clear violation of the Federal Bankruptcy Code, the Franchise Agreements, and 200 years of contract law, they are SHOCKED when they hear what REALLY happened. I explain to them about the bondholders getting screwed out of their first lien status by the government...the payoff given to the UAW...the backroom deals and corporate politics that determined what dealers got shut down and above all how the government facilitated the theft of private property from U.S. citizens and allowed the manufacturers to walk away from their contractual obligations to the dealers they terminated illegally.
I totally agree - 200 years of contract law were thrown out when the Federal Bankruptcy Court did a "quick rinse" and processed the GM and Chrysler Chapter 11 bankruptcies.

With Chrysler it was so clear that investors with a first lien position were getting screwed while the UAW with second lien positions ended up making out like bandits.

Even today when the media recaps what happened with GM and Chrysler it's complete revisionism. When calculating how much the tax payers lost on the GM/Chrysler bailouts the media/government almost always leave out the OLDCO losses and just focus on the NEWCO losses and no one ever mentions the $16 Billion tax break GM received that was inconsistent with the IRS tax code.
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