The recent decision of the U.S. Supreme Court not to hear the petition of secured creditors of the Chrysler chapter 11 bankruptcy signals the end of the separation of powers concept taught in schools throughout the United States.
The brief order of the U.S. Supreme Court has once and for all put the fiction of a balance of power between the Executive, Legislative and Judicial Branches to bed. Each once separate branch, now is part of single team, with the Executive branch, and President virtually in complete control. The distinction once made, between our form of government in the U.S., and forms the U.S. has labeled as Dictatorships, has been muddied by the U.S. Supreme Court. The irony is, that this is what Bush administration V.P. Cheney was pushing for the past 8 years, an "Imperial Presidency".
What the U.S. Supreme Court did, without opinion, was to say that once monies are appropriated by Congress, the President and Executive branch can do whatever they wish with taxpayer funds. And that a Judge has full authority to unilaterally modify any contract, in any way, the Judge chooses , and there is no appeal from the Judges decision as it relates to Federal Bankruptcy laws. This means that no contract or security is enforceable in a Chapter 11 Bankruptcy in the U.S.
Investors should take note; there is no protection against the loss of your investment; and, be it land, buildings, or equipment pledged as security for a loan, all security can evaporate when a Corporation files for Chapter 11 in the U.S. What this means for debtor Corporations, is that Chapter 11 is the way out of virtually all obligations.
