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To: Candor7
It's not a theory, it is a practical reality. Ask a Washington Mutual bondholder.

The US treasury just doesn't give a dime, the UAW demands everything there is to work again, and Fiat says they will only deal with a clean company after, not the messy one within, bankruptcy. Then the bondholders get nothing, and everyone else goes right ahead and makes the existing deal on the table without them, five minutes *after* all the claims are cancelled as unpayable by the judge.

Why is this hard to see? The US treasury is the only party willing to put in money here, so naturally it calls the shots. If JP Morgan were doing this deal in its place, that is how it would go.

30 posted on 05/05/2009 4:26:42 PM PDT by JasonC
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To: JasonC
Well, you may be right about the judges ruling , but then again, there is a reason Obama wants a done deal before he goes in. Bond holders are secured debtors, and they may want a stake inn control of Chrysler in exchange for their deminished returns.

Thats the real issue.Obama wants them gone, so thet the Unions don't have to deal with them. Its "class warfare against the wealthy." And you can guess who I am cheering for.

32 posted on 05/05/2009 4:56:37 PM PDT by Candor7 (The weapons of choice against fascism are ,derision ,truth. (member NRA)
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