Josh: GM has assets and liabilities. The assets sold or liquidated or allocated to the bondholders is worth something.

In bankruptcy court they would be first in line. Not anymore.

So from now on the cost of borrowing through bonds has to cover the risk that the government by fiat will change the contractual arrangements.

And I don’t think the man at the top has the vaguest notion how it all works. As he said during the campaign, he prefers the 40,000 feet view.

Derek