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Peter Schiff's Editorial in the New York Post: Funds Hoodwinked

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May 05, 2009 – Comments (5)

This week, the Obama Administration failed to push through a reorganization plan for Chrysler that would have, among other things, used government bailout money to give the United Auto Workers a majority stake in the company.

Reacting to the setback, President Obama took aim at the few Chrysler bondholders (including hedge funds and private investors) who had scuttled the plan. He described these “holdouts” as unwilling to make the sacrifices that the company, the workers, the pensioners, and the taxpayers had been prepared to make for the good of the country. Ironically, the “greedy” group that Obama holds responsible for killing the auto industry is the only force capable of saving it.

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5 Comments – Post Your Own

#1) On May 05, 2009 at 5:02 PM, uclayoda87 (29.14) wrote:

People can vote at the ballot box, but they can also vote with their wallets.  Don't buy a Chysler/Fiat or GM product and consider buying a Ford if they don't take government money.

Take money out of BAC, C, JPM, etc. and move to smaller local banks who have not taken government money.

Support Non-Union businesses, expecially local small businesses.

Don't contribute to any PAC or political party.

Learn to save money and live below your means.

Buy with cash.

I'm basically recommending a new type of government sit-in, where we protest by sitting on our wallets and refuse to cave into government demands.  If they are forced to rob us, so be it.  Let them reveal themselves for what they really are, the leechs and parasites of our society.

 

 

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#2) On May 05, 2009 at 10:34 PM, ajm101 (31.82) wrote:

"As a result, expect a cram-down rather than a negotiation. The sanctity of the bondholder’s investment contracts will crumble under the political weight of Obama’s vision."

Please!  The bondholders can pay back the $4B in existing government loans and accept liquidation value then.  "Sanctity of the contracts" my rear, the bondholders simply want to take control in a controlled bankrupcy that's financed by the US taxpayer to get the operating company (minus union contracts, pension obligations) for a song.

Maybe that's why he was only able to get his OpEd piece into the illustrious NY Post.  "Pessimistic Pete Pens Piece!" would be the headline.

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#3) On May 06, 2009 at 6:30 AM, kaskoosek (67.10) wrote:

 ajm101

No one obliged the government to bailout auto companies. It is their fault they lost money.

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#4) On May 06, 2009 at 10:27 AM, OleDrippy (34.83) wrote:

#1) On May 05, 2009 at 5:02 PM, uclayoda87 (30.86) wrote

 

+1 ! Good idea!

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#5) On May 06, 2009 at 11:48 PM, ajm101 (31.82) wrote:

Kaskoosek - noboby obliged Oppenheimer et al to lend money to a company unlikely to repay their debts like Chrysler, either.  They were speculating.  And now there are reports that the bondholders also held CDSs issued by AIG - this is not a simple borrower / lender story.

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