In an earlier post I wrote about how investors in Chrysler bonds were your everyday people and not greedy capitalists out to stop the Obamatrain. Do you remember this Obama quote?
“Now, while many stakeholders made sacrifices and worked constructively, I have to tell you, some did not. In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout.
They were hoping that everybody else would make sacrifices and they would have to make none. Some demanded twice the return that other lenders were getting.
I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars.”
Last week we saw that Obama didn’t really stand for the dealers like he said. He put over 60% of them out of business. It turns out he also doesn’t stand with the Indiana state pension fund for teachers and policeman. According to a WSJ article, the state pension fund lost millions due to the Chrysler restructuring as a bondholder. Another fund that was penalized was their state road and bridge construction fund.
What? Obama was going after those greedy hedge funds right? That’s correct, if you think that retired teachers and policemen are greedy. Millions of Americans invest in bonds because they want a safe investment for their retirement. A bond fully secured by the Chrysler’s assets seemed safe enough, right? Nope! You see Obama needed to give the UAW 55% of Chrysler. Why, because the UAW gave Obama almost $2 million in contributions, plus another $3 million in advertising.
This is truly a low moment in Obama’s Presidency and he’s only 5 months in. I cannot believe the cronyism propped up by this President. I cannot believe the left complained so long about Bush, but turn their heads at Obama’s brutish administration which is so much more brazen.
The law of unintended consequences must now be satisfied. First, Obama and the government now get to deal with a lawsuit from the state of Indiana. I just hope Indiana is willing to go all the way in their pursuit of the money that is rightfully due to the teachers and police. These people deserve every penny from their pension. Second, hedge funds have determined that the risk of loss due to politics is so high, that they will not be investing in any company that receives government aide. The UAW shouldn’t worry however, I’m sure one of Obama’s banks will be forced to give them money.
I’ve stayed out of the personal attacks on Obama so far, but after this I’ve decided to step into the ring. Obama truly is a tyrant and a petty one at that!