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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (49938)	5/11/2009 7:47:17 AM
From: KyrosL	5 Recommendations Read Replies (2) \| Respond to of 217904

Nobody's rights were violated in the Chrysler bankruptcy. Simply the government decided this time around to distribute taxpayer largess to the UAW rather than the lenders, unlike what it did with the banks. Back in January, Chrysler estimated what it is worth in liquidation. It came out to around $2 billion. Since the Government is the only lender (DIP) that is willing to help Chrysler avoid liquidation, it is the one that makes the rules of who gets what. The lenders wanted to get the benefits of a rescued Chrysler on the Government's dime. The Government, however, had a much more favored constituency to give its subsidies to: the UAW. The lenders got exactly what they would have gotten, had the government let the market decide Chrysler's fate. Here is a WSJ description of what happened. online.wsj.com