ChuckT @#25,
You are exactly on point. President Obama used intimidation and the cramdown threat to punish investors who were in a secured position and had helped float Chrysler in the past.
Here’s my investment strategy.I own an American Car, a Ford. Until the secured creditors are repaid and equilibrium restored, I will never buy a Chrysler product. I will ride a camel, lama or yak before I buy a Chrysler-Fiat. If GM goes the same route, the same will be true for it’s products. If I have to I will buy a foriegn auto, but never a Chrysler or GM.
Did you hear the President prattle on about Toyota and if they can build a Hybrid a US company can? Does he understand that Toyota SUBSIDIZES production of the hybrids through their other conventionally powered lines because the hybrid would be prohibitively expensive for consumers otherwise? How will GM or Chrysler fair given that economic reality?
If I were a hedgefund manager I would look carefully at investing funds outside of the US banking industry and automobile companies. How can you be confident of a return on your investment after the move that President Obama pulled last week? There are industries in our country worth investing in, but not those two, not anymore.
