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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (482394)	5/20/2009 9:05:30 PM
From: i-node	1 Recommendation Respond to of 1573691

>> 2 - If senior debt is treated as junior to the unions, than future lenders will likely charge higher interest rates. This totally wrecks the concepts of corporate debt and borrowing leaving it FUBAR. The largest companies with the hugest capital needs are the same group that will be affected by this. Who is going to lend them money in the future if that debt can, by the government, be unilaterally subordinated? You'd have to be nuts to lend money to an American automaker. The integrity of corporate capital structures in the country has been violated and there will be long-term consequences for having done this. It will adversely affect capital formation for years to come, if not forever.