the seediest parts of the chrysler bankruptcy are the payoffs to the UAW for the millions that they donated to the obama campaign (a 55% stake in the company), the preference for unsecure creditors (the UAW again, unsurprisingly) over secure creditors (Indiana state pension funds), closing mostly dealerships in republican counties, and my personal fave, forcing the union with fiat so the italian carmaker can transfer the technology to make "smaller, more fuel efficient cars".
that sound you just heard was a portion of your individual liberty disappearing.
While quite aghast at the whole fiasco, on several fronts. I really don't see how this is a wavering of liberty. One can't mandate how something unfolds, when you require help. If you wish to maintain the liberty of complete control, you must remain solvent! They failed, hence they had to cede much control.
The portion of the new company being given to the UAW, is to take over the claims for the pension funds which were so dramatically underfunded. While they perhaps were not first in line, in a typical bankruptcy scenario. I really don't think there is anything typical when you're dealing with companies this large, and surely the Pension Guarantee Board was terrified of taking it over.
As for that Indiana State Pension fund, I'm sorry for my lack of sympathy. But did they not buy those bonds, for pennies on the dollar, as more savvy investors ran away, willing to take whatever they could find to unload the bonds? Did not the bankruptcy judge determine that they'd receive more with a structured bankruptcy as it was, than the alternative. They took a gamble, and lost, I think we all saw that one coming.