Your Brain on Marxism #1

I am thinking people need examples of the concerns I have been raising rather than abstract logic. So, below is short piece from Business Week of June 4.

I will throw these examples in from time to time, as it will be easy to report on the increasing number of malicious consequences of socialism, until the media is coerced to no longer report on them.

You don't think so? Have you heard any major media talk about the pension funds wiped out? Imagine if the GOP did things like this.

Once the unions and retirement plans realize what is going on, there will be less interest in change - even for the genius teachers and old-school unions who funded Obama's victory. There will also be less interest in using money as an investment in places where the government can destroy it. Watch for foreign investments.

Of course, there is always welfare for those wiped out.

I today's paper I read NY will save $400,000,000 in two years by creating a new tier of recent hirees who will get a much smaller package, union approved, and firing 4,000 others. See how the unions work? The 4,000 are irrelevant, as they can no longer vote. The new people will be happy to get a job while the "leaders" have a great time at conventions. Oh well, the unions will lose the extracted dues of the 4,000, but, hay, everyone has to suffer these days.

If the Marxist imposition continues, then capital will disappear. That is what the socialists want, being stupid. When we are spiraling down, the government can grab more power and drive away more investment. A small example of this is how Quebec's frenzied attack on Angophiles drove the major businesses to Toronto, the home of the Bank of Montreal.

The theory is who needs pension plans, anyway? The government will take care of everyone. Thank you Big Brother, I love you.

Indiana Teachers and Cops vs. Chrysler

Indiana pension funds now pin hopes on the Supreme Court hearing their bid to block Chrysler's sale to Fiat

By Esmé E. Deprez

As gas prices hovered around $4 a gallon and American automakers watched their pickup-truck and sport-utility sales plummet last summer, investment managers for some 100,000 Indiana teachers, police officers, and other civil servants poured millions of pension dollars into what the funds considered a safe investment: secured debt in Chrysler. Now, as the company speeds toward an exit from bankruptcy court, they are crying foul.

On Friday, the Second U.S. Circuit Court of Appeals agreed to block the Chrysler sale to Fiat, but only until 4 p.m. EDT on June 8—essentially giving the pension funds the weekend to try to get the U.S. Supreme Court to hear their arguments. It is not clear the high court will agree to consider the case. The Indiana State Teachers Retirement Fund, the Indiana State Police Pension Trust, and the Indiana Major Moves Construction Fund argue that the federal government's intervention in the bankruptcy is unconstitutional, since the proposed plan will pay back unsecured lenders before those that were secured. The unsecured creditors and the United Auto Workers contend the sale is fair and is supported by a majority of Chrysler's creditors...

..."Even though the debt was secured, it was clear the auto industry was very, very troubled at this time," says Shelly Lombard, a credit analyst and portfolio manager of high-yield and distressed corporate securities at Gimme Credit. "If it wasn't, it wouldn't have been offered at such a steep discount." In this recession, Lombard says, even secured bank debt is not a guarantee. The market's low price could have been due to a lack of buyers or because the debt was impaired. She compares the deal to buying a house at a bargain price: "Either there's a divorce and the people just want to get out of there, or the foundation is cracked. In an industry in such turmoil, due diligence becomes even more critical."