Obama Succeeds in Destroying Property Rights

This is tragic, and frightening: Chrysler Lenders Give Into Restructuring:

A scrappy group of dissident lenders that challenged President Obama’s restructuring of Chrysler LLC fell apart Friday in a development that signals a major political victory for the White House and likely paves the way for a rapid exit from bankruptcy for the beleaguered automaker.

The dissolution of the lender cabal clears away the largest obstacle standing in the way of the White House’s plans to sell the bulk of Chrysler’s assets to Italy’s Fiat Group SpA and start making smaller, more fuel-efficient cars in the United States. The company hopes to emerge from bankruptcy in a record time of less than two months.

The hold-out lenders charged that Mr. Obama, who had called them “speculators” and questioned their patriotism as well as blamed them for the bankruptcy, used undue political pressure, even though they were pursuing their legal rights in bankruptcy court, where the claims of such secured lenders normally prevail.

“After a great deal of soul-searching and quite frankly agony, they concluded they just don’t have critical mass to withstand the enormous pressure and machinery of the U.S. government,” said Thomas Lauria, the group’s lead attorney.

Read the whole thing. It’s chock-full of language that one expects to read in a fascist dictatorship, not a free country. Here’s another quote, and remember that these are private citizens with valid ownership claims:

What started out as a dissident group of a couple dozen hedge funds and other investors led by OppenheimerFunds Inc. dwindled to only six and then fell apart by the end of the week after the group realized there weren’t enough of them to take on the White House and Democrats in Congress, who owe their election in part to labor unions.

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