Obama Blames Chrysler Bankruptcy On Investors
Is there anyone Obama won’t blame? Is there any segment of the private population that he won’t assault? Well, we know he won’t blame himself. In this case, even the NY Times business section is call B.S.: The Lenders Obama Decided to Blame
Peter A. Weinberg and Joseph R. Perella are part of a band of Wall Street renegades — “a small group of speculators,” President Obama called them Thursday — who helped bankrupt Chrysler.
That, anyway, is the Washington line.
In fact, Mr. Weinberg and Mr. Perella, with sparkling Wall Street pedigrees, are the epitome of white-shoe investment bankers. And their boutique investment bank, a latecomer to Chrysler, played only a small role in the slow-motion wreck of the Detroit carmaker.
But now the two men, along with a handful of other financiers, are being blamed for precipitating the bankruptcy of an American icon. As Chrysler’s fate hung in the balance Wednesday night, this group refused to bend to the Obama administration and accept steep losses on their investments while more junior investors, including the United Automobile Workers union, were offered favorable terms.
In a rare flash of anger, the president scolded the group Thursday as Chrysler, its options exhausted, filed for bankruptcy protection. “I don’t stand with those who held out when everyone else is making sacrifices,” Mr. Obama said.
Sure sounds like one of those Joe The Plumbers socialist moments, eh? Definitely read the rest of the article, which basically says the president is wrong and should give it a rest.
And maybe Obama should consider what a cheapskate he was recently, when others were making sacrifices. He stiffed his daughters school. He spent over $329K on his Presidential plane photo-op, during which, I believe, lots of people in NJ and NYC sacrificed something to their shorts, as well as his quick plane trip to Missouri for his 100 day photo-op, while telling people to sacrifice themselves. He kept the White House temps way up, while telling people to sacrifice. He partied hard in the White House during the early part of his time as president, on the taxpayer dime, while asking people to sacrifice. But, hey, he is going to ask people to sacrifice something else, too
Millions of Americans enjoying their small windfall from President Barack Obama’s “Making Work Pay” tax credit are in for an unpleasant surprise next spring.
The government is going to want some of that money back.
The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.
But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.
Woops! Basically, the tax table changes were not well thought out. Kinda like the bill itself. Meanwhile, we are still waiting for Obama’s promised “tax cut” for 95% of taxpayers making under $250K. Lot’s of people who voted for Obambi have blue faces about now.
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Posted by William Teach on May 1, 2009 8:35 am
» Filed Under Barack Obama, News, bailouts
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13 Responses to “Obama Blames Chrysler Bankruptcy On Investors”
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Syndicate Me
Saul Alinsky RULES FOR RADICALS page 3: when tearing down capitalism ALWAYS blame the victims.
I hope that many who voted for Obama will have Red faces when they next go to the poles.
When is enough enough? Never for Obama, as long as he isn’t paying and the people that elected him get paid back. And, yes Esteve, there are going to be Red faces. More than Bob Beckel thinks.
Worthless Bluegum.. (Obama)
Sacrifice is only for the little people.
Why can’t you understand what you read?
The last few paragraphs, including the comments by the bankruptcy lawyer make it very clear the President is correct: these jackasses refused to compromise because they wanted more of my money (figuring the administration would bail Chrysler out again). They lost their game of chicken, they are not part of the bankruptcy settlement agreement already worked out, and will be lucky to get half of their original investment back after the cramdown.
The article clearly says that, but in a hurry to blame showers at a Little League game on Obama, you sort of missed the point of the story: they tried to extort us and they lost.
President right; Stop the ACLU wrong….how does this happen like everyday without you people getting a clue?
I hope that many who voted for Obama will have Red faces when they next go to the poles.
he got 53% of the vote and his approval rating is 62%. Do the math.
They have every LEGAL right to pursue their claims in bankruptcy court, Einstein. They’re the senior debt holders, but they were getting the short end of the stick compared to less senior ones. If I’m a shareholder I’m applauding their move, because they’re trying to get more pennies on the dollar than they would’ve through the Messiah’s hope n’change plan.
And, since you Lefties blamed every damn thing on George W. Bush, we can certainly resort to blaming showers at a Little League game on the One.
“I hope that many who voted for Obama will have Red faces when they next go to the poles.”
“he got 53% of the vote and his approval rating is 62%. Do the math.”
That’s till next April when they get their tax bill from Zero the Shylock and see that they OWE!
timb,
Those debt holders had every reason to balk at Obama’s plan when junior stakeholders are receiving claims not in align with their less senior positions.
The bankruptcy law, that has worked in this country for the last many decades, before the arrival of King Obama, allows for an organized and fair alignment of stakeholder interests…it is one of the main reasons to declare bankruptcy in an insolvent company.
In addition, it is, in the interest of stakeholders to assert their legal rights and actually is required for them to do so an obligation to shareholders.
Instead, Obama knew that Chrysler should have been allowed to fall into bankruptcy months ago, but demanded OUR money to “bail out” the car industry. And then a few short weeks later Chrysler is being forced into bankruptcy on Obama’s terms….bankruptcy law and organization be damned.
Oh, and by the way, the junior stakeholders, the UAW, who just happened to fill up Obama’s (and every other Democrat’s) campaign coffers with cash, get more in this deal than those who, by traditional bankruptcy law and finance, deserve more.
This was clearly a payback by Obama to the UAW at our the expense of the taxpayer, the law, and senior share holders.
Instead of looking at everything through class envy and emotion, you might try the law and precedent next time.
Fear of an outcome that he ultimately can’t control is one reason for his demonization of the bondholders. The bankruptcy court could rule in a manner that protects the investors at the expense of the UAW:
“The smaller lenders and funds pose some threat to the process of restructuring Chrysler, said attorneys and bankers involved in the matter. They’ll likely argue in court the U.S. is overriding contract law, bankruptcy law and constitutional protections against the seizure of private property.”
How dare those evil capitalists exert their rights!
Obama is clearly the most successful fascist dictator in the last sixty years. Blaming investors for causing a bankruptcy? What Obama has done is take a crisis and use it to his benefit. He has rewarded the unions with majority stake in Chrysler. He has brought in an Italian car company (you know how popular those Italian cars are) to show Americans how to make quality cars. And he has put the American taxpayer out 12 billion dollars to make the whole thing happen. And now GM has 30 days to do something similar. This clown is destroying America while the masses continue to kiss his feet. Terrifying.
Now is the time to mobilize those who attended the Tea Parties to go defend Freedom, Free Enterprise, and shut down National Socialism.