GM Bondholders Hanging Tough

I would personally like to thank the GM (GM) bondholders for hanging tough as a group and not agreeing to the strong arm tactics employed by the US Government and the Obama administration (thugs). The Government offered the bondholders $.10 on the dollar, while they were walking away with a 70% equity stake in the new company? This is not a “deal”. There was never a “deal” for the bondholders to consider. Is this how negotiations take place?

The government makes a ridiculous offer which is “take it or leave it”. When it’s rejected, the company is rushed into bankruptcy and the assets are sold in a process that the government controls. It’s not a true bankruptcy. The judge has no say. The President is running this process. This is becoming less of a democracy everyday.

I guess that this has become the new form of American capitalism, screwing the bondholders.

When you’ve run the business into the ground and nobody is willing to loan you another penny, you’ve driven your stock price into the ground. You’ve eliminated benefits, fired people, and maxed out the CEO/Executive compensation.

Take it to Obama - He’ll fix it.

It’s a simple 5 step process.

1. Screw the lenders. Make them a ridiculous offer of $.10 on the dollar or something less.
2. Talk about “surgical” bankruptcy and the “speed” at which the company will emerge.
3. Issue worthless stock in the new company and cross your fingers that it will increase in value.
4. Don’t worry - If it doesn’t work, the US Taxpayers will foot the bill.
5. Rinse Wash and Repeat for all failing companies.

The true problem will be that even as GM emerges from Obankruptcy. It will still have the major problem of trying to compete and selling vehicles to the public. If unemployment does not start to come down, then generating sales will be the major problem.

Hang Tough GM Bondholders. Don’t give up the fight!

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