Do you own GM bonds? Karl Denninger‘s got something he’d like to get off his chest about what may be about to happen to your investment…
From The Market Ticker:
If you hold this debt you are about to be wiped out by our government, who has decreed by fiat, without even a vote in Congress, that:
- You don’t matter.
- You don’t have a right to rely on anything in the prospectus printed when these bonds issued, or even common and statutory law.
- Your rights do not exist. Your government has literally declared economic war on you.
Let me be clear: The government, specifically President Obama’s Treasury, is acting exactly as did George Bush’s Treasury – they are behaving as gangsters who are about to rob you blind, returning only 10 cents – if that – on the dollar for your investment and they are going to force you to take it at gunpoint.
This despite the fact that the UAW is going to get somewhere between 80 cents and the full buck for every dollar they are owed for their VEBA.
VEBA obligations are unsecured and subordinate to yours under the law.
That means that under the law the UAW is entitled to exactly nothing until you get every dollar you are owed.
I don’t know about you, but I love a good anti-government, anti-union freakout first thing on a Wednesday morning.
Denninger goes on to compare what he thinks may happen to GM debt holders to what happened during the Chrysler negotiations…
They just got done ramrodding Chrysler bondholders with the exact same “deal”, shoved down their throats, and allegedly enforced with threats of tax audits and other jackbooted actions if the bondholders resisted in court.
Anyway, if this is the sort of thing you’re passionate about, Denninger does it better than most, so check it out.
Full Story: GM Bondholders (M-T)