I keep reading these quotes over and over and wonder how it is possible we have reached this point. We have the President of the United States trying to strong arm private investors exercising their contractual rights to recover their assets. How did we reach the point in such a short time that this is not an outrage? Imagine six months ago, if Republicans had charged that as President, Barack Obama would be attempting to run US companies and would actually be the one announcing the bankruptcy plans for a major US corporation … a bankruptcy that will leave two countries and the United Auto Workers as the majority owners. We would have been called lunatic, wingnuts who don’t live in reality.
“A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout,” Obama said, flanked by his economic, energy and environmental teams. “They were hoping that everybody else would make sacrifices, and they would have to make none. Some demanded twice the return that other lenders were getting. I don’t stand with them.”
White House Press Secretary Robert Gibbs said at the daily briefing that the hedge funds and investment firms were playing games.
“They tried to, in a sense, play chicken with the government for a better deal, and nobody blinked,” Gibb said. Later, Gibbs said the hedge funds and investment firms were within their rights to reject the deal, but that didn’t diminish Obama’s frustration or anger.
“I’m not sure the president’s problem with them is based on their rights,” Gibbs said. “I think the president’s problem with them is based on the notion that, as he said, and as many members of the team have said, and as many members involved in this agreement have done, which is make sacrifices in order for a company to move forward.”
You have to give Obama credit here … not only has he surpassed Europe in audacity in nationalizing our companies, he actually on his way to challenge China on state control of the economy.