As we have attempted, to the best of our ability, to espouse on these pages, the deepest and most permanent damage that has been inflicted upon the United States during the current Recession is not financial loss itself, but rather the invalidation of previously sacred Rules of the Game. In order to effectuate the proper functioning of a free market society, the Government must set and enforce specific and unmalleable parameters, specifically with regards to the capital structure. With Chrysler, the Government has entered the fray as an unsecured creditor, and proceeded to dictate to other, Secured Debt holders, the terms by which they might avoid a bankruptcy.
Apart from these theory-based objections to the Government's actions, we would propose that they have single handily managed to ensure that Chrysler's stay in Chapter 11 will be longer than previously necessary, and wrought with competing legal actions and claims-the only beneficiary of which will be the hordes of attorneys that will descend upon the proceedings. We see this as the most likely outcome.Sphere: Related Content