IDBillzFan Posted May 1, 2009 Share Posted May 1, 2009 But Obama's comments blaming the company's secured creditors for derailing the plan should be frightening to anybody holding any piece of corporate debt. Put simply, he's willing to cast aside unambiguous laws to favor a political constituency. This in turn will further keep the private capital on the sidelines, because now everyone will have to recalibrate their return expectations. Without private capital returning, there will be no recovery in the financial sector and you will see a mountain of bankruptcies in 2010. In effect, you will have aided the Depression you were trying to avoid by pouring trillions into the economy. Except that now you're sitting in a Depression after having thrown trillions into the sink hole, with an aging population and no growth for a decade. Not a financial guy, but saw this article yesterday, and I suspect this is what you're referring to in the above statement about blaming creditors for derailing his plan. White House Press Secretary Robert Gibbs said at the daily briefing that the hedge funds and investment firms were playing games. "They tried to, in a sense, play chicken with the government for a better deal, and nobody blinked," Gibb said. Later, Gibbs said the hedge funds and investment firms were within their rights to reject the deal, but that didn't diminish Obama's frustration or anger. "I'm not sure the president's problem with them is based on their rights," Gibbs said. "I think the president's problem with them is based on the notion that, as he said, and as many members of the team have said, and as many members involved in this agreement have done, which is make sacrifices in order for a company to move forward." The Associated Press reported that a group of funds identifying themselves as 20 of Chrysler's "non-TARP lenders" released a statement saying they had been sidelined during negotiations between lenders and the government. The group, which said it holds $1 billion in Chrysler debt, complained that the four banks were "obviously conflicted" because they had accepted money from the government's Troubled Asset Relief Program while the funds had not gotten TARP money. The group said its offer to the Treasury Department to reduce its claim to 40 percent was "flatly rejected or ignored." Interesting stuff. Thanks, GG. Link to comment Share on other sites More sharing options...
Fastback Posted May 1, 2009 Share Posted May 1, 2009 Wow...what a mess! It looks like Chrysler is done and we (taxpayers) will continue to have to propr up this mess of a company for quite some time. The (mis)management is mind-boggling. So the UAW is going to manage the company? Does anyone in their right mind think this will be a successful business? That is, of course, once it emerges from a prolonged bankruptcy. Pouring more money into a hole...awesome! Link to comment Share on other sites More sharing options...
PastaJoe Posted May 1, 2009 Share Posted May 1, 2009 Wow...what a mess! It looks like Chrysler is done and we (taxpayers) will continue to have to propr up this mess of a company for quite some time. The (mis)management is mind-boggling. So the UAW is going to manage the company? Does anyone in their right mind think this will be a successful business? That is, of course, once it emerges from a prolonged bankruptcy. Pouring more money into a hole...awesome! Did you even try to get past some headline on newsmax? Chrysler isn't done, it's reorganizing. That's the whole point, to end up with a viable long-term privately own company. And given that most of the stakeholders have already agreed to the reorg, the bankruptcy will be relatively short. Link to comment Share on other sites More sharing options...
bills_fan Posted May 1, 2009 Share Posted May 1, 2009 But Obama's comments blaming the company's secured creditors for derailing the plan should be frightening to anybody holding any piece of corporate debt. Put simply, he's willing to cast aside unambiguous laws to favor a political constituency. This in turn will further keep the private capital on the sidelines, because now everyone will have to recalibrate their return expectations. Without private capital returning, there will be no recovery in the financial sector and you will see a mountain of bankruptcies in 2010. In effect, you will have aided the Depression you were trying to avoid by pouring trillions into the economy. Except that now you're sitting in a Depression after having thrown trillions into the sink hole, with an aging population and no growth for a decade. Still waiting for amateur hour to end. Yep. And lets not forget that the hedge funds/other secured creditors have investors that they have to answer to. If they took a worse deal than they could have gotten in bankruptcy, they would be subject to a myriad of investor lawsuits. I'm guessing the government did not offer to indemnify the secured creditors against any and all investor claims related to taking a bad deal on Chrysler debt. A lot is riding on the rulings of the bankruptcy judge here, I don't envy his position. Link to comment Share on other sites More sharing options...
DC Tom Posted May 1, 2009 Share Posted May 1, 2009 Yep. And lets not forget that the hedge funds/other secured creditors have investors that they have to answer to. If they took a worse deal than they could have gotten in bankruptcy, they would be subject to a myriad of investor lawsuits. I'm guessing the government did not offer to indemnify the secured creditors against any and all investor claims related to taking a bad deal on Chrysler debt. A lot is riding on the rulings of the bankruptcy judge here, I don't envy his position. Of course, what's to stop the administration from running roughshod over bankruptcy laws, given that they have with almost every other law, rule, and corporate practice so far. They already established that shareholders have no rights...now bond holders don't either? I think a bankruptcy filing for Chrysler was pretty much inevitable to begin with...but I'm still stunned at how involved the federal government is in driving them to it. Link to comment Share on other sites More sharing options...
Kelly the Dog Posted May 1, 2009 Share Posted May 1, 2009 Of course, what's to stop the administration from running roughshod over bankruptcy laws, given that they have with almost every other law, rule, and corporate practice so far. They already established that shareholders have no rights...now bond holders don't either? I think a bankruptcy filing for Chrysler was pretty much inevitable to begin with...but I'm still stunned at how involved the federal government is in driving them to it. Well, the corporations have run roughshod over pretty much all the corporate laws, rules and practices so far, too. One thing that made me laugh last night hearing some of this nonsense was that under the new reorganization, the members of the UAW may not get overtime until after they work 40 hours a week. What a concession, huh? Link to comment Share on other sites More sharing options...
IDBillzFan Posted May 1, 2009 Share Posted May 1, 2009 I think a bankruptcy filing for Chrysler was pretty much inevitable to begin with...but I'm still stunned at how involved the federal government is in driving them to it. And the fact that a major contributor to its demise, namely UAW, actually gets a stake in Chrysler now. Jesus, I swear these libs are having the absolute time of their life...shoving their Tony Montana face in a coke-covered table of America. Once big whiff and...."Aaaaahhh...then when you get the money, you get the power...." I particularly love the part where Chrysler is going into BK, and yet they still need ANOTHER $6B to keep things going since the original $4B didn't get it done back when BK was the best answer in the first place. Part of me feels like they have no idea what they're doing, and part of me feels like they no precisely what they're doing. Link to comment Share on other sites More sharing options...
BillsFan-4-Ever Posted May 1, 2009 Share Posted May 1, 2009 what's to stop the administration from running roughshod over bankruptcy laws Like He Must Not Be Named did? Link to comment Share on other sites More sharing options...
Fastback Posted May 1, 2009 Share Posted May 1, 2009 Did you even try to get past some headline on newsmax? Chrysler isn't done, it's reorganizing. That's the whole point, to end up with a viable long-term privately own company. And given that most of the stakeholders have already agreed to the reorg, the bankruptcy will be relatively short. You sure about this? I'm not. That's my point. Link to comment Share on other sites More sharing options...
DC Tom Posted May 1, 2009 Share Posted May 1, 2009 Like He Must Not Be Named did? You mean...Congress? Link to comment Share on other sites More sharing options...
IDBillzFan Posted May 8, 2009 Share Posted May 8, 2009 Caldera quits. Kudos to the administration. Link to comment Share on other sites More sharing options...
GG Posted May 8, 2009 Share Posted May 8, 2009 Caldera quits. Kudos to the administration. That's why I love the Internet. The inserted ad in the story was a Delta airplane Link to comment Share on other sites More sharing options...
/dev/null Posted May 8, 2009 Share Posted May 8, 2009 A picture is worth a thousand words. And this one is worth $328,835 http://www.nypost.com/seven/05082009/photos/af_photo.jpg Link to comment Share on other sites More sharing options...
drnykterstein Posted May 9, 2009 Share Posted May 9, 2009 I guess it really was a photo op though. Also the guy resigned. http://thecaucus.blogs.nytimes.com/2009/05...rector-resigns/ Link to comment Share on other sites More sharing options...
Fastback Posted May 9, 2009 Share Posted May 9, 2009 I guess it really was a photo op though. Also the guy resigned.http://thecaucus.blogs.nytimes.com/2009/05...rector-resigns/ No schit Sherlock. That's what the link indicated three post's ahead of you. You really are retarded aren't you? Link to comment Share on other sites More sharing options...
GG Posted May 19, 2009 Share Posted May 19, 2009 Indicating that someone got the memo. Today's email from corporate security: New York's Annual Fleet Week festivities begin tomorrow and will continue through Tuesday, May 26th. The Fleet Week celebrations include flyovers of military aircraft, including one scheduled for tomorrow, Wednesday, May 20th, at 11:45 a.m in which jet fighter planes will fly up the Hudson River from the Verrazano Bridge to the George Washington Bridge at a low altitude. Additional aircraft flyovers and aerial demonstrations may also take place as part of the Fleet Week activities. Link to comment Share on other sites More sharing options...
DC Tom Posted May 19, 2009 Share Posted May 19, 2009 Indicating that someone got the memo. Today's email from corporate security: Too bad they didn't mention that F-16s would be screaming over the DC region at 5am this morning. That was friggin' loud this morning...like waking up in a Jerry Bruckheimer movie. The wife thought we were under attack. Link to comment Share on other sites More sharing options...
pBills Posted May 19, 2009 Share Posted May 19, 2009 Too bad they didn't mention that F-16s would be screaming over the DC region at 5am this morning. That was friggin' loud this morning...like waking up in a Jerry Bruckheimer movie. The wife thought we were under attack. I heard the announcements on WTOP. Link to comment Share on other sites More sharing options...
DC Tom Posted May 19, 2009 Share Posted May 19, 2009 I heard the announcements on WTOP. So'd I...AFTER they buzzed my house. Link to comment Share on other sites More sharing options...
pBills Posted May 19, 2009 Share Posted May 19, 2009 unlucky Link to comment Share on other sites More sharing options...
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