The Government's Retort

In November 2008, one of our self esteemed bankers made a statement saying we don't need three automakers. See:

http://foreverthecynic.blogspot.com/2008/11/quote-from-banker.html

Well, the government has made its own statement. According to the Wall Street Journal on May 11, an administration official made this comment about shutting out the creditors in the Chrysler bankruptcy crisis: "You don't need banks and bondholders to make cars."

According to the article "..Chrysler's suppliers, dealers and unionized workers are critical to its survival -- and so is Fiat, which will contribute high-efficiency engines and foreign distribution [however] the creditors were expendable". The article went on to say that "Pulling a trick from the hedge-fund playbook, the government used its leverage as the sole willing lender to Chrysler, either in bankruptcy court or out, to extract deep concessions from some of the country's biggest banks".

So what goes around, comes around!