Roadblock

President Obama might just have hit the biggest bump in the road on his way to turning America into a socialist nation. The funny part is that a liberal and not a conservative, although temporary, put up the roadblock.

Supreme Court justice Ruth Ginsburg put the sale of Chrysler to Fiat on hold. It seems that she is at least giving lip service to the notion that we are a nation of laws. If she does the right thing and has the whole court hear the case, there is a better than even chance that the sale will be blocked.

The issue is whether we are governed by "the rule of law" of if a power hungry President can skirt the laws to bring about what he wants to happen. The problem for President Obama is that our bankruptcy laws dictate how the assets of a corporation will be divided up when a company fails. Those creditors with secured loans are first in line for any funds to be dispersed. Obama want to pick and choose who gets what. He gave a bigger percentage of return to the unions than he did to say, state employee pension funds. It’s great payback for the union’s support during the election but will he get away with it?

The bigger problem is if secure creditors’ rights aren’t upheld by the courts, you will see billions of dollars of foreign investments leave America and go overseas where secured investors are still protected. Even China, communist China, no human rights China protects the rights of investors.