Re: OT: Chrysler...

You don't understand. These first-lien bondholders have first rights to any bankruptcy money. They paid premium prices specifically to get bonds with those legal rights--taking a lower interest rate--all to secure an acceptably safe investment for the benefit of the teachers, pensioners, and other investors they represent.

They're entitled, by law, to recover 100% of their investment before any other stakeholder is allowed to collect anything. That's the law. The sanctity of that law is what gives private investors the courage to loan bail out money to troubled companies like Chrysler.

They've offered to settle for 50%, even though they have no such obligation.

Instead of being first in line for recovery, as is their legal right, Obama wants to put them last, paying off junior unsecured interests-- the UAW in particular--first, at a higher rate of recovery.

Obama wants these bondholders accept 29 cents on the dollar while awarding other, lower-ranked stakeholders more, first.

This dispute would normally be decided by the Judiciary, in bankruptcy court, as provided by law. Here, the Chief Executive seeks to impose his will.

Most of the bondholders have already been coerced--they're TARP recipients, etc., and have no choice. When these few holdouts resisted redistribution of their property, Obama's called them "greedy," said they were "playing games."

They're being railroaded, strong-armed. It's outrageous; a breach of property rights, and of the separation of powers. The President is not supposed to seize private property to give to his friends and allies. It's unconstitutional, and it's wrong.

Let's hope the courts set this right.

Simply showing up at a factory and working in it does not confer right of ownership to its workers. They have the right to be paid, and that right is secondary to people who put their hard- earned pension money at risk to finance that factory.

Destroy that, and there will be no factories.

Welcome to the real world.

Best wishes, James Arthur

Nope thats wrong too - only losers diversify.

Yep - A world without Laws Like Romania under Chauchesku; only since Obama is black its Ok

Those bonds were supposed to be low-risk, because they're supposed to have 1rst rights in a bankruptcy. That's why those investors bought them.

And that's what Obama wants to nullify, so he can give Chrysler to the UAW.

So let's see--voting-wise he'll own the banks, healthcare, and the car companies. Not bad, in 100 days.

James Arthur

Not that you're racist, eh?

Nope - I just dont agree with the Tranzi-agenda of glorifying "opressed minorities" just *because* they are minorities (or wimmen). Obama is getting a free pass from the media even though he is flouting the law while handing goodies to the same Wall Street Cronies that Bush/Cheney was brown-nosing. Some "change" huh?

Ignoring the black facade, Obama is simply seen to be just another Chicago thug.

Which brings joy to my heart... the elite will remain the elite, and the "working" class will end up paying the tab in subtle ways, like high-priced fuel and electricity.

Orgasmic Schadenfreude ;-)

...Jim Thompson

Well, you've got the situation where Bush managed to piss off practically everyone who matters, so Obama has a lot of points saved up. It's going to take a few years before we really discover whether Obama is any good or not.

You say that like it's a good thing.

So... You don't consider yourself to be part of the working class?

Chump change. "Chump change you can believe in."