In ‘Puter’s post below, he posits that the hedge funds struck a blow for capitalism and rule of law in America. ‘Puter tacitly claims that the Obama Administration is concerned primarily with nationalizing our economy.
But if you don’t believe ‘Puter, take “an administration official’s” word for it from this Washington Post article, also linked in post below.
An administration official this morning expressed disappointment, saying the holdouts had failed to “do the right thing,” but that “their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward.
This language, coming from the executive branch, should terrify Americans. This cowardly unnamed official makes several brash statements and assumptions, including: (1) the government has unique knowledge of the “right thing” for private participants in an arms’ length transaction in a capitalist economy; (2) secured creditors are failing to act in their own economic interest by insisting on maximizing recovery for their investors by insisting the rule of law be followed; and (3) it is in the national interest to extrajudicially impose conditions on an existing contract freely entered in to.
For all who wish to see, the Obama Administration is showing its true colors. President Obama knows better than you do what is right for you, and he is willing to use government power to cow you into compliance with his diktat. This administration’s attitude has done much to frighten investors out of the economy, thereby hindering recovery.
‘Puter doesn’t expect you to listen to believe his prescient rantings. At least until the Obama Administration starts bullying you, too.