[anamax]

> if the law doesn't give retirees priority over bondholders in this situation, then the law is an ass.

These bondholders recently made secured-by-real-property loans to GM, Chrysler, and Ford.

Because these loans were secured by real property, that is collateral, they were thought to be safer and thus the rates were lower. (It's sort of like the difference between mortgages or home equity loans and credit cards.)

Without those lower interest rates, the automakers would have gone under years ago. But, that's water under the bridge.

Going forward, if secured lenders aren't first in line, why will anyone make secured loans at lower interest rates?

Heck - why will anyone loan money to a union-dominated industry that is experiencing rough times?