A Federal Appeals court has put the sale of Chrysler to Fiat on hold for 10 days. A group led by a pension fund in Indiana has filed suit that the Federal Government is breaking their own laws by putting an entity preferred by the government (the UAW health care fund) in front of the secured creditors, in violation of the way the bankruptcy law and decades of law say that bankruptcy law works.
The “Showdown” is whether the United States is going to continue to be a nation of laws, where everyone can make rational decisions based on knowing what the rules are and the government enforcing the rules. The alternative is government by decree and personality cult, justified by government designated “emergencies”.
The courts are supposed to be the checks and balances against a runaway President. The future of the country is at stake. If the Court of Appeals caves on this issue, then we have become Venezuela. Let’s hope the concepts put in place 225 years ago are stronger than the power of MSNBC.
Tags: chrysler, personality cult, rule of law