tag:blogger.com,1999:blog-1559661241465229945.post3142817015217117057..comments2023-10-20T10:22:39.636-04:00Comments on Workingclass Conservative: Obama’s Chrysler Bankruptcy Proposal Leaves Investors (the REAL Owners) Out in the Cold...JMKhttp://www.blogger.com/profile/14281344324964417974noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1559661241465229945.post-6057762028003887352009-05-18T13:22:00.000-04:002009-05-18T13:22:00.000-04:00AGAIN, you're 100% right, but it's even worse than...AGAIN, you're 100% right, but it's even worse than that!<br /><br />What the Obama administration has done is to overturn centuries of accepted contract law, which dictates that the shareholders and creditors are FIRST in line in a financial crisis.<br /><br />This "deal" arbitrarily gives the UAW a 51% ownership stake in a Company they helped ruin and saves another 25% to 30% for Fiat, with the rest being held by the Fed.<br /><br />This "deal" does far more than merely put Chrysler's investors "out in the cold", it will have a chilling effect on ALL private equity lending going forward, with would-be lenders now having to take into account that government may at any time and for any arbitrary reason, subvert or even negate their contracted obligations, to benefit others.<br /><br />Who will lend to Chrysler...or GM, or for that matter ANY major corporate entity, given this current administration's penchant for intervention?<br /><br />That leaves ONLY government as the last remaining source of credit sustenance for these Corporations, making them, de facto GSEs or quasi-government entities.<br /><br />Ironically enough, that's what Hitler, Musolinni and Stalin all did!JMKhttps://www.blogger.com/profile/14281344324964417974noreply@blogger.comtag:blogger.com,1999:blog-1559661241465229945.post-52481058275634709682009-05-17T08:41:00.000-04:002009-05-17T08:41:00.000-04:00Obama talks about "sacrifice" jmk, yet where is th...Obama talks about "sacrifice" jmk, yet where is the sacrifice by the auto unions? The bondholders got screwed, and the shareholders got hosed. The banks that lent Chrysler money got shafted. The only people that made out are the people that didn't invest anything into Chrysler to begin with, the unions.Alpha Conservative Malehttps://www.blogger.com/profile/12769725919555832952noreply@blogger.comtag:blogger.com,1999:blog-1559661241465229945.post-39957370276584513652009-05-04T21:19:00.000-04:002009-05-04T21:19:00.000-04:00True enough Z, though Carter followed a dozen year...True enough Z, though Carter followed a dozen years of unbroken Keynesian policies and a period of wild government expansion, Obama follows only about SIX Keynesian years, though they were, as they say, "deuzies."<br /><br />In their first three months, the Obama administration has quadrupled the deficit and his spending would more than double the National Debt in just five short years.<br /><br />That's unsustainable.<br /><br />I expect a very brief recovery, followed by some prolonged agony...the American people haven't felt the worst of this...not by a long shot.<br /><br />But we will.JMKhttps://www.blogger.com/profile/14281344324964417974noreply@blogger.comtag:blogger.com,1999:blog-1559661241465229945.post-67044635851801772712009-05-04T00:22:00.000-04:002009-05-04T00:22:00.000-04:00Lots of comparing to Carter lately for obama..I'd ...Lots of comparing to Carter lately for obama..I'd say that's a REAL bad sign, huh? Except obama's like carter on steroids.Zhttps://www.blogger.com/profile/15989573357446569262noreply@blogger.com