Comments on: Why Would Anyone Invest In Chrysler Now? http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html ... for evil to triumph is for good people to do nothing Thu, 09 Sep 2010 12:29:16 -0400 hourly 1 http://wordpress.org/?v=3.0 By: ndfenceofobama http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-801 ndfenceofobama Thu, 11 Jun 2009 13:59:47 +0000 http://blog.kirkpetersen.net/?p=535#comment-801 You raise valid points. It's aweful these companies got any money at all, only to wind up going bankrupt anyway. Bush set the wheels in motion for this and Obama bought into it. These are huge mistakes that stain the elected officials of both parties. I get the feeling, they know something we don't and are operating on information the general public has no knowledge of. Even the worst of economists could tell you these car companies were going bankrupt. You raise valid points. It’s aweful these companies got any money at all, only to wind up going bankrupt anyway. Bush set the wheels in motion for this and Obama bought into it. These are huge mistakes that stain the elected officials of both parties. I get the feeling, they know something we don’t and are operating on information the general public has no knowledge of. Even the worst of economists could tell you these car companies were going bankrupt.

]]> By: Wanna Buy GM Stock? Better Hurry, the Price is Rising! :All That Is Necessary… http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-792 Wanna Buy GM Stock? Better Hurry, the Price is Rising! :All That Is Necessary… Sun, 07 Jun 2009 20:09:46 +0000 http://blog.kirkpetersen.net/?p=535#comment-792 [...] about those “well-defined” bankruptcy rules… var addthis_pub = 'kirkpete'; var addthis_language = 'en';var addthis_options = 'email, [...] [...] about those “well-defined” bankruptcy rules… var addthis_pub = ‘kirkpete’; var addthis_language = ‘en’;var addthis_options = ‘email, [...]

]]> By: vulcanhammer http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-719 vulcanhammer Thu, 14 May 2009 05:41:23 +0000 http://blog.kirkpetersen.net/?p=535#comment-719 Fiat and the UAW could sink GM as badly as the management before them. The major losers in all of this is the American taxpayer who will be called upon again to settle the bill. This is a disaster. Fiat and the UAW could sink GM as badly as the management before them. The major losers in all of this is the American taxpayer who will be called upon again to settle the bill. This is a disaster.

]]> By: Kirk Petersen http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-702 Kirk Petersen Wed, 06 May 2009 15:44:20 +0000 http://blog.kirkpetersen.net/?p=535#comment-702 That's not how a bankruptcy works, dano -- EQUITY interest (stock price) goes to zero, but bond-holders and other creditors are entitled to divvy up whatever assets remain. Further, SECURED creditors are entitled to 100% repayment before unsecured creditors get anything -- that's why the interest rates are higher for unsecured loans, to compensate for the higher risk. The administration should let the normal bankruptcy process play out, rather than put presidential pressure on the secured creditors for the purpose of handing a gift of majority ownership to the UAW -- an important Democratic constituency. That’s not how a bankruptcy works, dano — EQUITY interest (stock price) goes to zero, but bond-holders and other creditors are entitled to divvy up whatever assets remain.

Further, SECURED creditors are entitled to 100% repayment before unsecured creditors get anything — that’s why the interest rates are higher for unsecured loans, to compensate for the higher risk.

The administration should let the normal bankruptcy process play out, rather than put presidential pressure on the secured creditors for the purpose of handing a gift of majority ownership to the UAW — an important Democratic constituency.

]]> By: dano_in_ny http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-701 dano_in_ny Wed, 06 May 2009 15:30:13 +0000 http://blog.kirkpetersen.net/?p=535#comment-701 Well, actually the security interest in the companies was driven to -0- under the guidance of the shareholders, managements, and the boards, until they had no remaining security interest. Now, in talking about recapitalized companies in suppressed insustries that will eventually recover, I would say there would be a lot of investor interest. We saw in the first TARP (Bush/Paulson) escapade what government investment without governance would do. What would you have suggested as the alternative? Well, actually the security interest in the companies was driven to -0- under the guidance of the shareholders, managements, and the boards, until they had no remaining security interest. Now, in talking about recapitalized companies in suppressed insustries that will eventually recover, I would say there would be a lot of investor interest. We saw in the first TARP (Bush/Paulson) escapade what government investment without governance would do. What would you have suggested as the alternative?

]]> By: Harrison http://blog.kirkpetersen.net/2009/05/why-would-anyone-invest-in-chrysler-now.html/comment-page-1#comment-700 Harrison Wed, 06 May 2009 05:48:40 +0000 http://blog.kirkpetersen.net/?p=535#comment-700 A great example as to why the government should stay out of private businesses! Fiat is in for quite a ride! A great example as to why the government should stay out of private businesses! Fiat is in for quite a ride!

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