30 April 2009

News from The Millionaire's Club.

When a bankruptcy judge exercises his or her ability to restructure the terms of a loan to enhance the chances it can actually be repaid (as opposed to the collateral being repossessed), it's called a "cramdown." 
In a time of rampant foreclosures, this seems like a relatively sane course of action, except the power doesn't apply to primary residences. Cramdowns only apply to your second (or additional) homes, yachts, airplanes, etc. Which is really helpful for rich folks. God bless 'em.
The White House essentially promised Chrysler the Mother of All Cramdowns today.
In the Senate, there was some proposed legislation to remedy the cramdown provisions to provide the same protections to ordinary citizens with, well..only one home, no yachts or aircraft. They finally voted on that issue today. 
Every Republican senator, plus 12 Democratic senators, decided that chumps with only one house didn't deserve the protections allowed their betters.
Hey America — your Senate has spoken, and it said, "fuck you, losers!"
Noted.

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