Insiderman

More on White House's Strong-Arming of Chrysler Hedge Fund Hold Outs

Hmmm... control the banks... gut bondholders... who ya gonna call? Your banker. Nobody will bother with bonds because their senior status in the credit hierarchy is GONE baby gone. Obama controls the credit market.

I guess that takes bondholders out of the crowded market for loanable funds, too, while the Treasury satiates itself on debt.

Oh, wait... they don't care about crowding out because the Fed can use funny money (book transactions) to pay for Treasury securities. Intergovernmental borrowers already make up one of the top 3 categories of Treasury debt holders. Why not add a few more TRILLION to the Feds cooked books.

I feel so... used.

GM's Bondholder Pillaging Plan

I believe if the UAW wants to keep their charter at GM, then they should pony up the money for the equity needed for GM to reach viability. Their pension fund managers are WAY too smart to allow that kind of investment in the fund, but we taxpayers appear too dumb to stop it.

Tyler didn't mention the 1-for-100 reverse split PRIOR to exchanging stock for bonds:

"As described under “Description of the Charter Amendments,” prior to the distribution of GM common stock to tendering holders on the settlement date we intend to effect a 1-for-100 reverse stock split (the “reverse stock split”) of GM common stock. Unless otherwise indicated, all share numbers contained in this prospectus related to the exchange offers are presented without giving effect to the reverse stock split."

I couldn't tell whether the 10% equity stake in exchange for bonds factors in this reverse split.

Detroit's Big Three and the Democrats' Economic Illiteracy

Since previous government invoivement has restricted shareholder dividends and executive pay, perhaps the Republicans could demand that recipients of bailout money should not be allowed to make political contributions.

A Radical Solution for U.S. Automakers

I stopped reading at "nationalize the auto industry." Nationalizing the auto industry virtually ensures we will have plants based on the political powerbase, car colors that match Nancy Pelosi's expensive clothing and unions ad nauseum (since they contribute heavily to politicians).

The truly troubling part about the auto industry proposed bailout would be $25 billion of our money to pay for retired worker health care. Let them eat medicare.

Two Fight Back - Cramer's Mad Money (9/11/08)

WaMu says they have capital. Cramer says they don't. Which one do you believe?

I believe the possibility of WaMu doing a "Bad Bank" much like Lehman is doing by separating their Commercial business and CMBS.

Cramer is an idiot with an occasional good idea and a tight stop loss for all his bad ones.