Relevant:
- Chrysler to File Bankruptcy, Obama Unhappy with “Money Peopleâ€
- Mandelman U. Presents: There’s Credit Default Swaps & then there’s Credit Default Swaps
- Obama Pushing "Quick, Surgical" Big Auto Bankruptcy Fantasy
- Argentine Bonds Sink After Default; Swaps Holders Seek Ruling
- Aiful Credit-Default Swaps Triggered by Restructuring
2009-05-12 — nakedcapitalism.com
"It only takes opposition by 10% of the bondholders to stymie an out-of-court restructuring of GM. The FT believes that there are enough bondholders who, via being net short GM bonds via credit default swaps, have good reason to block a negotiated outcome and force the automaker into bankruptcy. And that poses risk to the economy, since there are meaningful odds that the fast track solution of a 363 sale will be opposed successfully, producing uncertainty as to when GM will exit bankruptcy and putting further strain on the supply chain. GM is a big actor in its ecosystem, and too much damage to its supply chain will hurt all US based car-makers, including the transplants."
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Comments:
tvsterling at 19:52 2009-05-12 said:
The point being missed by these ultra greedy Supersuits is the overall good of a quick settlement. The people of this country are a party to this thing too. The real precedents are further back in our history. The entire economy was taken over in both WWI & WWII. If you think this is a lesser crisis than those (or the Great Depression) you are very unimaginative indeed. The overall good of the country will be served in the end & my hope is that these obstructionists will pay dearly for their short sightedness & greed. Just a thought. We might be able to push these people out of the way by forcing them to suspend their claims to some future date. Even better eliminate their conflict with the greater good by declaring Credit Default Swaps to be illegal gambling contracts (which they are) & null & void. Problem solved. Permalinkadd a comment | go to forum thread
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