makerealthings

Chrysler's Bankruptcy: Historic Changes for Markets?

I'm still hoping the senators will face some of our country's recent economic trouble with more frank discussion, and analysis. More financial reform is needed. I'm speaking of the CDS instruments used by hedge funds, which are backed by AIG, which in turn are backed by TARP. What a vicious cycle - which appears to channel taxpayer dollars to hedge funds. How do we deal with these insured hedge funds that held Chrysler hostage? To me it is a hostage situation - monetary terrorists, if you will. And, GM is next!

I personally did a web search of one of the principals of the hedge funds - that held out against Chrysler. Only to find that Stairway Capital's principal has offered seminars on setting up these "financial knots" for distressed investments. To them it is never about people, or economy, or country. The president was right in not standing with them - I wish he would have went one step further, and forced them to compliance as a matter of national interest. After all your taxpayer money is funding the hedge fund insurance.