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

To: tejek who wrote (482441)	5/21/2009 9:44:42 PM
From: Joe NYC	1 Recommendation Read Replies (1) \| Respond to of 1573599

Ted, Its you who doesn't seem to understand. When a company goes into Chapter 11, contracts can be voided or altered by the judge if its to the benefit of the surviving company. That was the opportunity - opportunity to save US automakers by freeint it from UAW contract. UAW had nothing solid at hand and could have been discarded, secured creditors placed as the owners of the company and maybe even DIP financing could have been found if the union was out. Unfortunately, Obama owes the unions too much. He discarded the US automakers, rule of law, rules upholding validity of contracts. Its business. The hedge funds took a risk and it didn't pan out. There are big differences between things not panning out. When government steps in, overwrites rules that have been in place for decades and centuries, it is not the same as things just noe panning out. I thought you were a proponent for capitalism. Has something changed? Without enforceable contracts, capitalism will suffer almost irreparable harm. Following that will be a drop in standards of living people have enjoyed as a result of rule of law, free markets and enforceable contracts. The small time corruption Obama is engaging is nothing in significance compared to the harm that we all will suffer as a result of the Chrysler deal. What I find amusing is your continued defense of hedge funds. Hedge funds are some of the least scrupulous, legal businesses in this country, and yet, you feel they need defending. Hedge fund is your straw man that you keep knocking. It is a distraction you are bringing up again and again - just to change subject from the issue at hand. I am defending secured creditors. Of those, 90% plus are not hedge funds. IIRC, just 4 entities (Chase, Citibank Goldman Morgan Stanley) own ~79% of the secured assets, majority of the remaining 21% are non-hedge funds, and probably low single digits are hedge funds. Whether the owner of the secured asset is a hedge fund or anybody else is irrelevant. Joe