amazingly stupid/scary: treasury filing for Chrysler bankruptcy

#51
#51
droski said:
I'd have to agree in principal since most of the original bondholders probably have sold and the only that remain were probably relying on a gov't bailout to make some quick cash. but this sets a very bad precident and flys in the face of 100 years of US bankruptcy laws. Why would any private captial ever invest in these companies again (or any unionized company in financial trouble) if the bondholders can't rely on at the very least owning the company in the worst case scenario? this could seriously increase the cost of debt borrowing for a lot of companies who can't afford the higher rates.
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Further - why would private capital invest in any publicly held company when the government has shown this willingness to rewrite the rules?

It totally skews the risk/reward calculation when you add the risk that the government may come in and supersede all agreements and bankruptcy laws to determine who gets what.
 
#53
#53
Brewerw said:
Nope. He's an incredible leader wasted believing in incredibly stupid policies. In sports terms, MJ playing baseball.
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You don't think if he didn't pander to unions he wouldn't have got elected? He would have lost PA for sure.
 
#54
#54
The United Auto Workers union would eventually own 55% of the stock in a restructured Chrysler LLC.
 
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