Obama Points to New Villain in Chrysler Bankruptcy: Hedge Funds

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chrysler saved us return the favor

fran vander weyst of MN 1:05AM August 01, 2009

Just because our President the "Media" and have painted these hedge fund managers as greedy, money hungry villains does not mean that their legal contract, that entitles them to be paid in full before all other creditors, is not valid. No matter what we think of these "greedy" "monsters" when they invested, they protected there shareholders with a contract that guaranteed the value of their investment in return for a modest rate of interest. Neither the President, the Congress, nor the Judiciary has the right to nullify a legal contract and dictate terms to any citizen of this county. At least that's not what they taught in school way back in '81!
The stewards of these funds have a responsibility to their investors, who by the way might be you and me. The funds are made up of money invested by teachers credit unions, pensioners, retirement plans, personal retirement accounts, college endowments, etc.
These fund managers have a legal right and fiduciary responsibility to protect there investors. Just as the White House has a responsibility to protect the rule of law, not to try to skirt it through personal attacks and smear tactics. President Obama has taken an oath to "protect and preserve the Constitution" so that a contract will be worth more than the paper it is written on and the law protects us all, no matter how "horribly greedy" we are.

Warren A. Smith of NY 12:00AM May 02, 2009

Hedge Funds create nothing but money gained through speculation. For years Chrysler has built automobiles that carried people to school, got them to work, teenagers had first loves in. Three dimensional durable goods designed by Engineers and built by craftsmen.
I WW2 the Chrysler plants built machines of war which helped our nation assit the Allies and untimatly prevail. The Hedge Funds are nothing but gambling houses to enrich a select few. You few, you Hedge Fund Managers, take note. Be happy with what you have gained and now are allowed to keep because of the TARP bailout. We the American people will not allow it a second time, got it! Good for President Obama!
WARNING:
DO NOT ENRAGE THE AMERICAN PEOPLE THROUGH YOUR PERSISTANT GREED!

Brett Herndon of AR 9:46PM May 01, 2009

WHITE HOUSE INTERFERENCE
Chrysler and its “rogue” debt holders shouldn’t give in to the Administration’s bully pulpit.
http://pacificgatepost.blogspot.com/2009/05/dilettantes-at-chrysler-gate.html

James Raider of WA 9:08PM May 01, 2009

We all no the about Union Corruption and with the government pumping Trillions into the banks, the only people that should worry or protest are "hedge funds" "regular working people" .
Irony of President Obamas plan is that the very people losing jobs are also paying for the bail out. Those so called Affluent" are in wall street - markets continue inching up despite more terrible news, they are in fact rebuilding their empire. Many people in our state are now calling our Pres. Oblame-ah (I do not approve). We keep hearing about sacrifice and responsibly, which has not fallen on the Gov, but on us ! We hear the "administration", say its getting better slowly, spend your $$; really maybe your friends, who are apparently not us.

GR of AZ 7:37PM May 01, 2009

So the managers of the hedge funds are angry, eh? Tough! They got themselves in the situation they're in by refusing to budge on the issue of Chrysler's debt. In any case, there are those of us who are angry with their decision. It's because of them that Chrysler was forced into bankruptcy, and they're crying about how unfairly THEY were treated?!
If the judge rules against these hedge funds involved with Chrysler, that's their problem.

Arthur of AL 5:42PM May 01, 2009

There should not be government intervention other than the bankruptcy judge. Not one dime should have been given to these companies. When you lose money every time you sell your product, there is no way to come back from that. The President of the US has not only ridiculed fellow Americans the past three days (Christians, tea party participants, etc.) now he ridicules those businesses who were trying to stay in business. When did the President's job become one of ridicule and pointing fingers? He needs to spend some time in the White House and less time in front of the teleprompter. Doesn't he have a press secretary?

Deanne Hall of GA 4:06PM May 01, 2009

I don't condone government telling business to do - especially when business has proven that it acts responsibly and it has a sense of "corporate responsibility".
This is an old-fashioned term, one that implies that companies owe something to the public that enriches them. Shareholder profit is not the only thing that should be considered. Those companies that focus only on short-term results are those who move manufacturing and call centers overseas at the expense of American jobs.
Hedge funds don't send jobs overseas themselves. But they are just as cynnical - they "bet" against success of American business at times - and are often enriched by failure and unemployment in the USA. They have no loyalty. Money is their "God".
In the case of Chrysler - it is obvious that Chrysler is a weak company. It has been since Iacocca begged for a bailout in the 1980's. These hedge fund managers knew that - They were trying to gamble on a long shot, and they got caught. They should "man-up" and make concessions and accept their losses. Instead - like the Minnesota senatorial race - they prefer bunches of lawyers, delays and back-room dealing hoping to outlast the "other guys" and somehow avoid their share of the losses.
I hope bankruptcy court covers this well - and requires the same concessions that Treasury asked for before the bankruptcy - AND legal fees. As usual - the only winners here will be the lawyers.
Anyone see how we are all being ripped off by lawyers, sports agents, credit card companies, retirerment fund managers, insurance brokers (not our friendly neighborhood agents, though), and hedge fund managers?
I am glad Obama called them out on this. Not because I think Chrysler is without fault, but because the cynical money-grubbers need to pull out their history books, and learn about what honorable people do when times are hard. They could have looked good - instead they will be "forced" to write off some $$ and be villified in the process.

Dorfy of SC 1:12PM May 01, 2009