A nation of laws, not of men…

May 24, 2009

That’s soooooo 18th Century –

Kent Engelke at Capitol Securities Management, said the administration plan for GM, based on reports, “is asking the senior debt holders to forgive $27 billion in debt for 10% of the company. The U.S. Treasury and the UAW will forgive $20 billion and receive 89% of the newly formed company.”

The plan, he said, “sacrifices the senior debt holders for the unions. This is wrong, lacking legal precedent, violating the most basic rule of law and capital structure.”

Other than that, it sounds like a good plan.

Why would anyone invest in any company that is tied to the government?


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