Chrysler Bankruptcy Repercussions

Discussion in 'Economy' started by Annie, May 21, 2009.

  1. Annie
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    Annie Diamond Member

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    Unions WON in scrapping the rule of law, but in the long run?

    Fund Managers Burned by Obama Now Say They Are Wary (Update3) - Bloomberg.com

     
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  2. editec
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    editec Mr. Forgot-it-All

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    Well, he doesn't really have to worry about that too much.

    Fewer and fewer industries have unions, anyway.
     
  3. WillowTree
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    WillowTree Diamond Member

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    I sure as hell wouldn't lend you a dollar if all you wanted to give me back was 29 cents.. that was just plain robbery on the thugs and the unions part.
     
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  4. editec
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    editec Mr. Forgot-it-All

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    If the unions hadn't given up their pensions and taken stock in leiu of them, those lenders would have gotten ZERO on the dollar.

    Of course I wouldn't expect you to understand that, Willow.

    You're so blinded by your partisanship you can't think straight.
     
  5. Ame®icano
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    Ame®icano Gold Member

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    Their investments were secured, they would get much more if it went to court. They were pressured not to go to court.
     
  6. American Horse
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    American Horse AKA "Mustang"

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    I think the impact will be much greater than just companies with powerful unions. Foreign investors, and even American investors will have begun to see danger in investing in American corporations whether bonds or stocks, even some big oil corps.

    Fanny and Freddy, thought to be immune from failure or huge percentage losses, now have stock values little more than a hundredth of their earlier highs two years back.

    Taken seperately these things might be let pass, but taken together they have huge implications for investors and increasingly will not be ignored. Money will fly to more secure economies.
     
    Last edited: May 21, 2009
  7. editec
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    editec Mr. Forgot-it-All

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    Secured by what, exactly?

    Had they been secure they wouldn't have had to go to court.

    Debtors have to stand in line when a company goes down, and the courts decide what percentage of the corpse each debtors gets

    They're damned lucky to have gotten 29% back, I suspect.

    'Chrysler was broke
     
  8. Annie
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    Annie Diamond Member

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    Indeed, they are trying power grabs all over the place. They 'deem' an industry vital or too big to fail, they can step in. Rule of law is out the window.
     
  9. Toro
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    Toro Diamond Member

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    This was a terrible decision by Obama. It is absolutely true that investment funds are pulling back from participating in programs designed to get credit moving.
     
  10. WillowTree
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    WillowTree Diamond Member

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    they shouldn't have to lose a penny.. so I don't blame them for never loaning you another red cent. that's just robbery..
     

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