wayweird

May 4 (Bloomberg) — General Motors Corp. may be more likely to end up in bankruptcy based on the Obama administration’s willingness to place Chrysler LLC into court protection to safeguard union health-care benefits.

So Obama has played the role of special pleader for the UAW, and decided to stick it to the investors. And who are the investors? Well, WE are the investors - anyone with a pension plan, anyone with a 401K, anyone in the stock market, anyone who owns bonds. We ARE the investors in these companies. Every public company has little people investing in them.

And yet Obama says to hell with you and me. He’s going to bat for the UAW, and he’s going to stomp on GM as well.

With GM and its biggest bondholders at odds over resolving $27 billion in unsecured claims by a June 1 deadline, the Chrysler model indicates that President Barack Obama may resort to bankruptcy to end any impasse over that debt, said Martin Fridson, chief executive officer of New York-based credit investment firm Fridson Investment Advisors.

Chrysler filed for protection April 30 after the U.S. was unable to persuade secured lenders to swap $6.9 billion in claims for $2.25 billion in cash. A union retiree health-care trust was offered a 55 percent stake in Chrysler.

So the retiree program which is unsecured, (in bankruptcy legalese that means it’s low down on the chain in terms of being a creditor) was likely to get much less than that. However, Obama in his infinite wisdom puts them near the top of the chain and then takes the secure creditor, who is secured as a matter of federal law, and kicks him down the chain.

Why?

Because he’s trying to benefit his favorite constituency while punishing someone he doesn’t give a damn about - which is you and me or anyone else who invests in the stock market or who has a pension plan.

“This confirms the fear, which right along has been that the Obama administration is more sensitive or beholden to the unions than the bondholders,” Fridson said. “It makes it clear that GM bondholders aren’t likely to be able to work out anything outside of bankruptcy.”

GM bondholders proposed April 30 they get a 58 percent ownership stake in the Detroit-based automaker in exchange for their $27 billion in unsecured claims. Bondholders are objecting to GM’s proposal they get a 10 percent share of GM equity while a union health fund would get $10 billion in cash and as much as a 39 percent stake for $20 billion in unsecured claims.

While we are not yet in a dictatorship we a have a man in the White House who is the closest thing this nation has ever had. He bears more resemblance to a mafia don than he does to a U.S. President. We have a man who is advancing the cause of tyranny at break-neck speed. We have a man who is willing to use his muscle to do whatever he wants to do - including undermining and smearing his opponents whilst getting elected to office as a senator or running for president with this felonious group ACORN.

He’ll do whatever he wants to do while he smiles and shakes hands and waves and pretends that he is the coolest dude that ever was or ever will be.

And we’ll all suffer for it.

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