In what may be the end of the rule of law, the Supreme Court decided to NOT review the terms of the pre-packaged Chrysler asset sale. In the name of expediency, bondholders have clearly been short-changed in this process, and, near as I can tell, no one disagrees. And yet this contractual arrangement -- being inconvenient -- is just swept aside.

Not good. Not good at all.

If secured creditors can just be blithely ignored, this will have ramifications, potentially huge ones. Why would anyone buy debt -- especially of a "too big to fail" enterprise -- with this precedent hanging out there?

With the multiple crises happening simultaneously, and this one being rather obscure, few have taken notice. Be sure that debtholders of OTHER companies have.

-RC