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Section 363 of the US Chapter 11 Bankruptcy Law is unfair.

July 23, 2010

You believed in the American dream. You bought shares in General Motors Corporation (GMC). The company couldn’t pay its bills because of mismanagement and declared bankruptcy. Chapter 11 allowed it to reorganize itself into a new GMC. The old GMC where your shares were registered become worthless. You lost your money.

What happened?

Over the years you voted for congressional representatives who decided that small investors will not be allowed to  convert their shares in the old GMC to shares in the new GMC when the new company goes public. Congress decided that only fat cats will own shares in the new GMC. The shares owned by the middle class investor became worthless derivatives. You might as well call them subprime GMC shares. Indeed, the economic system was unfair to the small home owner before and now it is unfair to the small investor. The middle class always gets screwed by the government because most of the voters vote for representatives that will represent only  fat cats. The conclusion: You are your enemy if you vote Republican but you are your worst enemy when you vote Democrat. The solution: Vote for a representative in November that promises to work hard to change section 363 of the US Chapter 11 Bankruptcy Law.

One Comment leave one →
  1. August 10, 2010 10:37 am

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    Actual mortgage rates can depend on the vehicle selected and the personal credit standing of the borrower. Figuring out which home loans make the most sense will depend on whether a borrower is looking to purchase new or is considering mortgage refinancing.

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