Socialism Comes to Town.
After the White House and the UAW shook down the bondholders of GM, they set their sights on the senior secured debt holders of Chrysler. The bondholders held their ground, and now bankruptcy court will resolve the disposition of the company's assets. The President may rant and rave about the treachery of the bond holders (many are retirement and pension programs), but the essential issue was whether the federal government and the union would be allowed to destroy corporate legal structure by usurping the holders of senior secured debt first claim to restitution in restructuring. Larry Kudlow described the actions of Obama and the UAW accurately and succinctly: theft. And socialist expropriation.