Comments on: Chrysler Bankruptcy Exposes Dirty Politics

Declan McCullagh: Obama Calls Creditors Who Lent Money To Chrysler "Speculators," But What About the Rule Of Law?

[Obatomy]

I guess the president is behaving like what he desires in his Supreme Court nominee, ignore the law and pick a side for which you are empathetic. You think the credit market is tight right now? Wait and see what happens when creditors realize the government now retains the right overturn secured loan contracts when they need to repay political favors. No one will lend in that environment without asking for huge return (high interest rates) to compensate them for their risk. Why would you ever enter an agreement when an outside can come in at any time an rewrite the rules?

[armykungfu]

It is amazing how many people on this board think it is OK for Obama to ditch the rule of law in order to pay back the Union for their political suport.

The big question is, if the president is above the law, why should any of us obey? Fear?

[sjc_1]

They did what they did to keep the car companies from dragging down the rest of the country. Workers are stakeholders that give their lives producing product. Bond holders are just rich parasites sucking the life's blood out of the company and its workers.

[adsin15]

Social Security is an entirely different concept. This was a private enterprise that was essencially nationalized by our government because it was so poorly managed that it was going to result in failure and the loss of hundreds of thousands of jobs. Investors are meaningless because they threw away their money. When I go to the casino and bet 1000 dollars on black 33 and I lose, I don't demand my money back.

These investors made a last minute gamble on a failing company. That company took the money, pissed it away and then screwed the investors by tanking their company and having it be taken over by the government. The company that those people loaned their money too is gone. Taxpayers own it now. Whatever contracts Chrystler had are now at the discression of the United States Government.

I for one think we should honor the decades old pensions and contracts that were promised to the thousands of employees of the company that the author of this article seems to think should be given nothing.

So apparently in the authors world, an employees 20 years of service to the company isn't as important as the money making schemes that some investors came up with 6 months ago. These investors had enough money to throw it away on Chrystler. They'll be quite allright. Lets worry about "Joe the Auto worker" before we worry about "joe the guy with extra money to gamble on longshot investments"

[omega39-2009]

Failure is a bitter tasting drink isn't it? Especially when you have to tell lots of teachers and retirees that your monumental stupidity lost them all their money.

"I ASS-U-ME-D that the government would pay us back 100 cents on the dollar!"

ASSUMED
Posted by adsin15 a

Adsin15, I am a "senior investor" with Social Security, I have been investing in it now for 30 years. I know that according to the geniuses on this thread, the constitution guarantees I will get 100% of my "investment" back BEFORE it is disbursed as corporate welfare or taxbreaks for the wealthy. That is why I sleep so well at night.

[adsin15]

The real issue here isn't why the so called "senior investors" ( a deceptive term since all UAW contracts are far senior to these recent money-making investment schemes) thought it was a good idea in the first place to invest in an obviously failing and crippled company. The only possible explaination is that they felt it was a fool proof plan. They assumed that no matter what, the US taxpayers would reimburse them if their plan didn't work. It never occurred to them that this plan could LOSE money because Washington always looks out for investors right? Chrystler is too big to fail! LOL.

Failure is a bitter tasting drink isn't it? Especially when you have to tell lots of teachers and retirees that your monumental stupidity lost them all their money.

"I ASS-U-ME-D that the government would pay us back 100 cents on the dollar!"

ASSUMED

[omega39-2009]

Hey omega39-2009

Is your name Chavez!!!!!!! Do you live in Venezuela!!!!!!! Get real BUD!!!!!!
Posted by golfered2 a

Hey golfguy, investments have inherent risk, too bad but moaning and carping and throwing out tired old references to socialism does not change that simple truth.

[hdc77494]

If the law doesn't protect secured creditors, no bank would offer lower interest in return for offered security. What bank would loan Chrysler a dime if they didn't have some collateral to protect themselves if the company didn't pay it back. If you couldn't put your car up as collateral, or your house, who do you think will loan you tens or hundreds of thousands of dollars you can just walk away from? How do you think we got in this mess in the first place. The rich get a deal?? They're your retired school teacher, retired autoworkers, and other hard working people just like us.

[golfered2]

Hey omega39-2009

Is your name Chavez!!!!!!! Do you live in Venezuela!!!!!!! Get real BUD!!!!!!

[hdc77494]

Rattner's quote as reported by a reputable web blog in the financial community;
Who the f#&^ do you think you're dealing with? We'll have the IRS audit your fund. Every one of your employees. Your investors. Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything and nothing we find to destroy you with." Sounds outlaqndish until you remember what happened to Mr Lewis at BoA. by Paulson/Bernakie. Your article leaves out that for their 10 billion owed, the UAW gets a 4.6 billion dollar note and 55% of Chrysler. For their 6.9 billion in secured debt, the hedge funds get 2 billion and no equity. The banks that accepted are all TARP banks, and the ones that didn't have no association with the feds.
http://finemrespice.com/node/56

[danceswithtrees]

Obama's actions here border on criminal in our nation of laws. I hope 3 things happen.

1. The creditors sue in Federal court and have the injustice overturned.
2. Everyone boycotts Chrysler and GM (I own a GMC and a Chevy, and am done with any UAW products)
3. We all rise up and throw this crooked administration out. Attend a TEA PARTY this 4th of July. Write, e-mail, and phone our leaders and let them know your disapproval.