[fightin bronco]

“Hedge funds are part of the Wall Street racket”

Some hedge funds are, but in the Chrysler case, these are investment firms that lent Chrylser money. The money that was lent was not their own, but most likely from employee pension plans, college endowments, etc. It is their fiduciary duty to get as much of their clients money back as possible. If these firms said that they would rather the UAW get their money for the “common good”, they would be sued. It is very easy to demonize “hedge funds” just like Obama is doing. All investment firms are not corrupt hedge funds.

[JasonC]

Mostly the money is different pockets of the UAW and the US treasury, actually. They are fighting over performance fees and bonuses. As for the idea that these are companies that actually lent Chysler money, um no, not so much. These are mutual funds that bought the debt after it was already clear it was going to default, "vulture" investor style, for 25 cents on the dollar.