Bill Frezza does not mince words:

The fate of Chrysler and its workers pale in comparison to the wrecking ball that would be taken to economic order if bankruptcy judge Arthur Gonzalez approves the administration's plan to give Chrysler's secured creditors the shaft. And what prize will we-the-people get in return? A doomed third-rate car company majority owned by its militant union run by Italian management building congressionally designed “green” cars no one wants to buy financed by taxpayers into perpetuity because no private investor in their right mind will touch the company with a ten foot pole. Is this supposed to be economic policy or comic opera?

As sharp and entertaining as the last part of this paragraph may be, it's the first sentence that's the most important. If the Obama administration's Chrylser plan is not stopped in court it will, in the words of a very knowledgeable friend of mine who deals in bankruptcy and securities law, "completely eviscerate the private debt markets."

Read the Frezza from start to finish to understand exactly why this is such a big deal.