Wild Ass Rumor Of The Day: Non-TARP Chrysler Holdouts To Be Paid Off
With TARP money, of course. Or so says our man on the inside of Chrysler’s bankruptcy proceedings. And apparently the holdouts will get even more than the already TARPed bondholders. Which means that although Obama may not “stand with” the “hedge fund holdouts,” apparently he’s OK with writing them a check for their trouble(d assets). Or maybe someone in the Treasury just made the connection: the only people who aren’t playing ball in this ends-justify-the-means “bankruptcy” call themselves “ The Non-TARP Bondholders.” TARP money has made everyone else compliant with Treasury’s union, so obviously the solution is to buy out the holdouts with just a little more TARP. After all, does anyone think Fiat, the UAW or the already-TARPed bondholders would be embarking on this ship of fools if government cash weren’t paying the way?
Is it just me, or is Geithner, as evidenced in the Buy Tarp Bonds photo, starting to look more and more like Rick Wagoneer?
I feel better about this than having the secured hedgies screwed over in some nefarious plan orchestrated by the president. Note: I said better than the other scenario, which is still a very long way from good. If true, I wonder if it spells the death of the good Chrysler/bad Chrysler plan.
There is the not to be hidden 800 pound gorilla in the room, who needs the weakest makers of cars? If the World has twice the needed capacity, it seems pretty hopeless to me that Chrysler will ever come back. A resurgance means taking conquest sales from competitors and at a profit. If that isn't a daunting task, then why have no American car makers been able to do it since 2000?
Should I file this under "Screw The Rules, I Have Money!" or not?