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This (Still) Doesn't Seem Fair....

Further to our post of May 14, kudos to the WaPo, who is like a terrier with a bone on the issue of the blatant inequity in the government takeover of Chrysler and GM. They've now editorialized on it twice in a little under two weeks. In today's installment, entitled, "Government Motors," they point out once again the proposed haircut (more like a buzz cut) for the investors while the UAW gets a trim:

"While the Obama administration has been playing hardball with bondholders, it has been more than happy to play nice with the United Auto Workers. How else to explain why a retiree health-care fund controlled by the UAW is slated to get a 39 percent equity stake in GM for its remaining $10 billion in claims while bondholders are being pressured to take a 10 percent stake for their $27 billion?"

As the WaPo points out, this has become a political, not a financial, process. Good luck finding investors for other future adventures.

Go here to join an online manufacturing discussion on the topic.


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This page contains a single entry from the blog posted on May 26, 2009 9:15 AM.

The previous post in this blog was Welcome, Manufacturing Crunch!.

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