Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (482620)	5/21/2009 8:16:24 PM
From: TimF	Read Replies (3) of 1573901

Whose doing it? The government is, in all sorts of ways, but the specific relevant case is putting the union, a junior creditor, ahead of the senior creditors in the Chrysler bankruptcy. You're projecting future events as if they will definitely happen. That's not true....they may happen. People respond somewhat rationally to obvious incentives. If you make lending riskier by letting those junior to the lenders get theirs first if the company fails, than you create a disincentive to lend. Its definitely "going to happen" in that there will be a disincentive created by this. Of course its not the only factor, so if other factors combine to make lenders a lot freer with their money, than borrowing for Chrysler or similar companies may not be that hard, but it will still be harder than it otherwise would have been. Actually its already started happening Message 25661757

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