Holding GM Debt? Gubbermint Is Robbing You!

Do you hold GM bonds? Perhaps some so-called "unsubordinated" debt?

A lot of people - individuals - do.

These bonds were quite popular for college savings and other long-term plans - including retirement.


Because the coupon was pretty good, they were unsubordinated (meaning senior, or first) preference in the event of bankruptcy, and GM has been around for a very, very long time.

If you hold this debt you are about to be wiped out by our government, who has decreed by fiat, without even a vote in Congress, that:

1.You don't matter.
2.You don't have a right to rely on anything in the prospectus printed when these bonds issued, or even common and statutory law.
3.Your rights do not exist. Your government has literally declared economic war on you.

Let me be clear: The government, specifically President Obama's Treasury, is acting exactly as did George Bush's Treasury - they are behaving as gangsters who are about to rob you blind, returning only 10 cents - if that - on the dollar for your investment and they are going to force you to take it at gunpoint.

This despite the fact that the UAW is going to get somewhere between 80 cents and the full buck for every dollar they are owed for their VEBA.

VEBA obligations are unsecured and subordinate to yours under the law.

That means that under the law the UAW is entitled to exactly nothing until you get every dollar you are owed.

President Obama and Geithner have declared that it does not matter what the law says - they are going to do whatever the hell they want - and what they want to do is SCREW YOU.

They just got done ramrodding Chrysler bondholders with the exact same "deal", shoved down their throats, and allegedly enforced with threats of tax audits and other jackbooted actions if the bondholders resisted in court.

To be clear: You have every right, under the law, to receive full value for your bonds before anyone else gets paid for so much as one penny of the subordinated or unsecured debt owed to them, INCLUDING THE UAW.

You accepted a lower coupon in exchange for what was represented to be less risk as a consequence of this protection.

Now, after the fact, you are being robbed just as clearly as you would be if President Obama and Tim Geithner came into your house at 3:00 AM with automatic weapons and shoved them up your nose, stealing every penny you had.

I ask you this essential question:

If President Obama and Tim Geithner will steal from you in this fashion, literally at gunpoint, do you believe that your 401k or IRA will not similarly be confiscated whenever our government decides it wants to steal from you on similar "terms" - or when it suddenly "needs" some money (like when the bond market has had enough of this crap and stops being willing to finance a nearly $2 trillion annual deficit!)

Site where I found this post


The Other Mike S. said...

I'm quite worried about my 401k. I've gotten it out from my past employer's grip and is in a CD at a bank. At least for right now, I can cash it out without having to get the permission of an administrator (which is now regularly being denied).

They did it in Argentina. I'm sure Barry has bought the playbook for how to do it here.

GunRights4US said...

Yes I'm terribly worried too.

They've already had some propeller head Ivy-league professor come speak to Congress about the feasibility of seizing everyone's 401k/IRA and giving everyone a "guaranteed" 3% return from the Gubmint. Another IOU from Uncle Sugar! Just what we need!

I have a large amount of holdings in an IRA that would cost me a huge penalty to remove because I'm in a high income bracket. But I fear I'm gonna lose it anyway!