This is not unlike the approval and then retroactive tax on bank bonuses approved by Congress last month.
The business climate is running scared right now. No one wants to get in bed with the government because they change the rules of the game (aka the law) on a whim. No one will invest in companies for fear that any potential profit (or in the case of the Chrysler bond holders, their debt) will be manipulated despite contracts that are supposed to protect (or at least manage) those investments.
I'd encourage you all to read this article, its short and to the point and its one example of what is becoming routine by this administration.
And before someone says "Well Chrysler is getting tax payer money so screw the bond holders!"
ReplyDeleteLook, I hear you, I agree. The point of the article is that the bond holders are getting screwed a) more than the UAW and b) in a way that completely violates bankruptcy laws.