darkpool

Burned by Obama, fund managers grow wary: "The sad thing is it impacts the manufacturing sector and the companies that have legacy liabilities directly. It will be nearly impossible, or much more expensive, to get secured financing."

Yes its tough on existing senior bondholders, and yes, part of the capital contract has been debased. However, lets not ignore the fact that going forward, this re-writing of the rules has serious adverse consequences for the entire US economy.Future potential bond investors are going to be demanding much tougher terms and rates......if indeed they are willing to lend to some companies/sectors at all. Therein lies the self-regulating nature of the global economy. The Government may think it can muscle in and bail out everything in sight, but it only hastens the long term decline of the US and brings forward the day of reckoning with the currency and interest rates.