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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (9013)	6/4/2009 4:40:09 PM
From: Brumar89	1 Recommendation Respond to of 86356

This challenge on behalf of the Indiana state pension funds is gonna be interesting. It could go to the SC. And the potential exists that the stiffing of the senior secured debt owners could be reversed. Which would be good for the system of law and contracts. This is a case where Obama's empathy vs the letter of the law is an issue. Empathy might say screw the senior bondholders - they're hedge funds, rich people - in favor of the retirees. But its not so simple. Other retired folks own through their pensions that senior secured debt too so if you screw the "rich bondholders" you're screwing retired Indiana teachers, police and so on. Plus you're setting up unionized industries for a situation where they can't raise money in the market except by paying junk bond type rates. Not good for other unions.