Obama's use of Chavez-esq tactics to crush bondholders and other lenders to Chrysler and GM is going to have serious unintended consequences.
First, how can either of these two companies ever emerge from bankruptcy with private financing. ? What lender would risk such a beating again ?
Second, lending to ANY union-dominated firm of size must now be viewed as having serious political risk. That political risk WAS largely absent from US lending criteria and confined to places like Ukraine, Russia, South America and Africa. Now a large segment of US industry must be considered as having substantial political risk.
Isn't lending to large states & large municipalities in the same situation ? If California got into trouble, would not Obama likely hammer its bondholders ? Bond buyers beware.
To me, lending to government supported entities like green industries falls into the same group. Would Obama let such fail in the old-fashioned way with lenders getting the firm out of BK ? Or would he step in & "save" them as a national goal ?
The same applies to major health care firms.
You can imagine if this is on my radar screen, it's now on the radar screens of every major private lender in the world.
Word of the Day
"Perfidy" - noun [$10]; perfidious - adjective
Perfidy means 1. the quality or state of being faithless or disloyal; deliberate breach of faith; calculated violation of trust.
Sentence: The perfidy inherent in Obama's gangster-esq treatment of traditional principals of financial reorganization will certainly cause serious disruption in future lending to any firms with political risk.
Le Mot du Jour
"Rompu, e" - adjective
Rompu means 1. worn out, exhausted; 2. well-versed, experienced.
La Phrase: Personne dans l'adminstration d'Obama n'est rompu aux affaires. C'est un problème !
Sentence: Nobody in the Obama administration has wide experience in business affairs. That's a problem !
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obama is a thug...........if he doesn't get what he wants.........he goes all gangsta
I see Battleship Ben read the series on the World Reserve Currency in this blog.
DJ reports Federal Reserve Chairman Ben Bernanke on Monday mounted an unusually robust defense of the U.S. dollar, in the wake of recent talk about unseating it as the chief international reserve currency. "For the foreseeable future, the dollar will remain the leading currency both for reserves and transactions," Bernanke said. "The issue at hand is whether or not the dollar will retain its value, and I think it will. I think it will be strong," the nation's top central banker said. The dollar will stay strong "because the U.S. economy is strong," and because "the Federal Reserve is committed to making sure we have price stability in this country."
He does seem ruthless. Mrs. B sensed that in the fall eletions & warned me.
yesterday again..........another day that i am 'rompu' after
sharkinvesting.com just totally nailing this market since march 6th..........dozens of winners every day
remember i know nuthin about stocks.........i don't know what TIP means......what put/call ratio means.....what is ops expo?.....what is a channel?.......i don't even have access to option quotes........i a merely a ping-pong player.........they tell me what to buy.....i buy it........it goes higher and i sell
danke vielmals jim !!!!!
johann santana working on a historic season.......the guy is unhittable........micrsoscopic era
but the mets won't score for him....and play sloppy defense when he pitches
top3 pitchers in baseball......johann.......doc halladay.....zack greinke......in any order.......doesn't matter
PS.....who is the highest paid pitcher in baseball ......cc sabathia.....owe him 165million
LMAOOOOOOOOOOOOOOOOOOOOOOOOOO
SILENCIO CABEZA DE CULO!!!
Ughhh I just watched a clip of Molotova from yesterday.
Tossing more firebombs.
How can she say the banks can't make any legit money when they can borrow at 0% and lend at 6% ?
I guess she's back to shilling for her bear beefer masters: Meredith the Marionette.
Goldman Sachs target raised to $200 from $152 at Rochdale (135.78 )
Hmmm I guess Rochdale reads the comments on this blog
;)
Bman i found that comment strange too..............but maria didn't challenge her so i thought maybe i missed somethin.................meredith 4000x smarter than me so ......
she did clearly say however that she was not shorting the banks
laszlo biryini is buyin JPM and WFC.....so at least he thinks they can make some money
GS 200
lmaooooooooooooooooooooooooooo
dick bove is a sharp guy
i'm not liking all these secondaries..........it's eating up alot of buying power
let's see if this market can digest them ..........else there is no 'next leg up'
S and p 950 seems logical.........although i am predicitng S and p 1000
let's see if this market can digest them ..........else there is no 'next leg up'
S and p 950 seems logical.........although i am predicitng S and p 1000
cant be wrong there "jim jr"
on the one hand..on the other hand
LMAOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Hey Bunk isnt the annual gun club meeting coming up?
the big shoot is in July.
what is Bud sayen...dickbove some sort of twisted dirtbag sex toy...laszlo biryini is that the thong of the week...WNR thx jim.
"these secondaries..........it's eating up alot of buying power"... credit markets coming out of the deep freeze, providing access to capital is a bad thing...got it.
I can shut up aazzhead like non other...think I'll take the free 30tank days...sure I would be a hero to those boyz, pakiclamchowder indeed, everyones fav dish indeed.
shutup pfffffffffffffffffffft
speak like a normal person and maybe i'll understand.......and respond
lemme give you an example........" yankee fans are f'ng douchebags "
am i clear ??
i don't get your last post ??
frosty will join the tank for 30freedays.....and he would be a hero to the other members cuz he gives out stock winners ?? the rest about clamchowder i have zero clue what that means
what the F!!!!!!!!!!!!!! who speaks like that
uh Bud ... are you metaphorically challenged ?
One makes "chowder" by chopping up the ingredients.
;)
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