Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TimF who wrote (482627)	5/21/2009 8:20:04 PM
From: tejek	Read Replies (1) of 1573927

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. The gov't didn't do it.....the BK judge did. BK judges have that leeway. Its not the first time its happened. 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. Again, this is not a precedent setting event......so your concerns are unwarranted. 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. Given what I know about car companies and their ongoing profitability, investing in Chrysler was an incredibly stupid move by the Indiana Teachers' Retirement Fund. Do you disagree?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next