WTF is up with Obama. He is blaming Peter Weinberg and Joseph Perella as the group in charge of tipping Chrylser into bankruptcy. In case you haven't noticed Chrysler has been a slow motion train wreck for over a decade.
"In fact, Mr. Weinberg and Mr. Perella, with sparkling Wall Street pedigrees, are the epitome of white-shoe investment bankers. And their boutique investment bank, a latecomer to Chrysler, played only a small role in the slow-motion wreck of the Detroit carmaker.
But now the two men, along with a handful of other financiers, are being blamed for precipitating the bankruptcy of an American icon. As Chrysler’s fate hung in the balance Wednesday night, this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms.
In a rare flash of anger, the president scolded the group Thursday as Chrysler, its options exhausted, filed for bankruptcy protection. “I don’t stand with those who held out when everyone else is making sacrifices,” Mr. Obama said."
The automotive bankruptcy situation is so ridiculous, I don't know where to begin. I've been tempted to post on it here several times, but it just seems so repugnant that I'm not sure how there can be another side to the issue.
It should seem obvious to anyone with half a brain that the creditors are getting fucked here - the only thing is, a large portion of the creditors are willing to accept the fucking, because the government promised to give them a blowjob afterward. What the banks are missing is that Obama bites, and what goes in will never come out, but that is an issue for another day. Saving Chrysler, using taxpayer money to subsidize their bloated warranties for God's sake, is the most woeful example of government intrusion in to private enterprise I can imagine. I have no idea what Mr Obama means when he says, "those who held out while others were making sacrifices," but I can only assume he is channeling Marx, and would like the big bad hedge funds to give to the nice little UAW, because God knows the UAW has never looked out for its own interests, and hedge funds were clearly founded to look out for the national interests. It's enough to make you sick - I was so happy when I saw Chrysler had filed for bankruptcy, and then Obama had to ruin the day. If only it had been Chapter 7.
Obama is looking to compromise American principles yet again. Good for the these firms standing their ground. Someone has been watching their copy of 300.
Gotta love how Obama is in one instance rewriting decades of bankruptcy legal precedent all to try and apease the unions. If there is one thing I hope more than anything, it's that the union gets completely screwed in this deal. I mean just completely blindsided and hung out to dry. That would be the only way I could be happy about spending billions in taxpayer money to bail out the auto companies. And of course the NYT was all over the creditors. I mean does it take a genius to figure out what's wrong with this sentance: 'this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms.' So as a senior secured creditor I have to take a huge loss while more junior creditors are made (almost) whole? WTF?!? Tell Obama he can lick my balls!!
I second this motion. Obama is swiftly climbing the ranks of the worse president ever, unless of course you are a fan of socialism...and all this after only 100 days! Poor Jimmy Carter; it appears he will be removed from his throne.
Regards.
I don't know anybody who drives a Chrysler. Fact.
I only see Chryslers in rap videos. Probably cause the grill on the 300m looks like a bentley.
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