Morning, IMPR.
Geithner: The Fox Guarding the Henhouse? [Larry Kudlow]
What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization.
Meanwhile, top Obama adviser Valerie Jarrett opened the door wide on CNN yesterday to bank nationalization and CEO firings. Unfortunately, my take that the economic stress tests are a political stalking horse for more government ownership, more government control of the banks, and more government disruption of shareholder rights and normal corporate governance looks to be coming true.
Indiana Confirms Swine Flu Case
Indiana Health Commissioner Dr. Judy Monroe said the person who has the virus had not traveled to Mexico, where more than 150 have died from swine flu.
“We don’t know if this person had contact with someone who had traveled to Mexico,” Monroe said.
http://www.theindychannel.com/health/19310478/detail.html