Topic: Feds preparing bankruptcy filing for Chrysler...

[DockMan]

I don't see how Obama can dump the blame on the bondholders for not taking a bunch less than they're entitled to. They hold senior,secured debt and under US bankruptcy law rank ahead of other parties. Why should they be expected to take a bigger loss to save Chrysler?

Easy because someone has to be to blame for Obama's failure in reorganizing Chrysler outside of bankruptcy......and it can't be Obama. We need things from Obama like and understanding about what has "enchanted"  him about his job in the first 120 days.

So we blame those greedy hedge funds who represent millions of ordinary people's savings for not caving in and holding out for a better deal. "I do no stand with them".....come on, capitalists are the new pariahs in the states these days i'm afraid. What the unwashed masses of this largely middle class society fail to grasp, in my opinion, is that their fates are intrinsically attached to business and going too far off-side towards either socialism or otherwise is only going to result in lower economic prosperity for everyone. In effect all this anti-business, "I do not stand with them" crap does is make people with money less and less willing to invest it. How's that going to stimulate the economy.

The Obamian utopia where government takes care of your every need through it's largesse and graciousness and unions run the countries business is not going to stay popular for long. Mostly because it is bound for colossal failure. I wonder how the Obama supporters will enjoy waking up one day to, through inflation, a worthless currency.

Don't get me wrong his social and foreign policy is such a refreshing improvement over the previous regime......but his fiscal policy continues to be increasingly worse decisions that are going to in the end effect the entire world, IMO anyway.
 

[carcrazy]

In a way, I give credit to Obama and his folks that did not buy into Chrysler/GM turnaround plans and put Chrysler in C11. He could have easily approved another $250M or so from the taxpayer's purse to buy those hedge funds. The gap between what they wanted and what the government had offered wasn't too big by the economy of scale ($2.5B vs. $2.25B IIRC). He already bought the big creditors (banks) who own to the government. The good thing is that Obama was probably advised that C11 is the only way to restructure Chrysler and he probably used the hedge funds rejection as the pretext to accomplish that without looking bad in some people's eyes (union). Bad mouthing the hedge funds after all looks bad but it may be just part of the plan. Just my speculation of course.
GM may follow the same pattern.

[dorin]

So we blame those greedy hedge funds who represent millions of ordinary people's savings for not caving in and holding out for a better deal. "I do no stand with them".....come on, capitalists are the new pariahs in the states these days i'm afraid. What the unwashed masses of this largely middle class society fail to grasp, in my opinion, is that their fates are intrinsically attached to business and going too far off-side towards either socialism or otherwise is only going to result in lower economic prosperity for everyone. In effect all this anti-business, "I do not stand with them" crap does is make people with money less and less willing to invest it. How's that going to stimulate the economy.

!  Hedge funds, private equity funds, etc., and all the associated greedy running them who push for short-term profits are primarily responsible for causing most management to focus primarily on the next set of quarterly results.  They are a root cause of the rot in the financial system that's screwing us over.  I definitely do not stand with them either.  What I wish Obama's administration would do is take that sentiment to its logical conclusion and nationalize all the banks that required a bailout already!

The current capitalist system is broken and evidently unable to sustain itself in the long term.  It's time for the "free-market" rhetoric to go by the wayside and truly look at coming up with a more sustainable economic model.  I think this model would still have a very large role for entrepreneurship and private capital, but it would also recognize the necessity of strong government oversight and intervention (and the need for taxes) as well as the futility of focusing on just short-term results.