Chrysler, The Government and The Constitution

Chrysler, The Government and The Constitution

It is always worthwhile repeating, so we never forget:

The Contracts Clause of Article V of the Constitution, a commercial right, dates from 1787 and is fundamental. This prohibits states from interfering with paying debts.

The Bankruptcy Clause of Article 1, Section 8. delegates to the federal government the authority to enact uniform laws on the subject of bankruptcy.

However, the Administration has used heavy-handed political machinations in the Chrysler bankruptcy, thereby playing havoc with our Constitution, by changing the terms of bond debt terms, in order to suit the Administration’s political aims.

By giving bond holders much less than they were entitled to, and the auto union far more, the Constitution was merely set aside. And there were not enough votes in Congress to raise a peep. The Administration can keep the incident from going to the Supreme Court for adjudication.

The breach in the Constitution is irreparable.