Obama lawyer: Chrysler-Fiat must be allowed
U.S. solicitor general asks Supreme Court to ignore appeal of Chrysler bankruptcy made by Indiana pension fund.
NEW YORK (CNNMoney.com) -- A top Obama administration lawyer urged the Supreme Court on Monday to allow Chrysler's bankruptcy to proceed, noting that the needs of the economy outweigh the needs of the deal's detractors.
U.S. Solicitor General Elena Kagan filed a request that the court deny an appeal by Indiana pension funds that had invested in Chrysler and say they will lose $6 million because of the bankruptcy.
Indiana Treasurer Richard Mourdock argues that the Chrysler case upends long-standing bankruptcy law. He also says President Obama has overstepped his authority by using funds from the $700 billion TARP bailout, originally enacted to rescue the financial sector, for an automaker bailout.
Mourdock is correct.
Like the economy in Zimbabwe or Nigeria? That’s where we are headed when the rule of law breaks down and the printing presses are run at full speed.
Our only hope now is that the bond market crashing will force the puppet master central bankers to end their folly.