I’ve come to hate the word “greedy.” It’s an epithet used almost exclusively by the Left to demonize somebody in business who is not compliant to the wishes of a politician.
An example is Michigan Gov. Jennifer Granholm, who is taking to the bully pulpit to persuade those to whom Chrysler LLC owes billions, to surrender the bulk of their claims. “On behalf of Michigan,” she said Wednesday, “on behalf of the thousands of people who will be affected if this company is forced into bankruptcy, I am publicly asking these hedge funds to not be greedy but to do what the banks have done and what everyone else around the table has done [and] take the concessions.”
Four major banks holding 70 percent of Chrysler’s $6.9 billion in secured debt, agreed to settle for $2 billion. The 46 hedge funds want a better deal. Talks appear to have collapsed. Unless agreement is reached by 11:59 p.m. tonight, a government-imposed deadline, Chrysler is headed to bankruptcy. Lenders may or may not get a better deal in bankruptcy.
UPDATE: Chrysler has filed for bankruptcy and officials hope to be out within 60 days.
After bankruptcy, Chrysler will end up as a union-owned company, with a 55 percent stake held by the United Auto Workers. If General Motors survives as structured by its government overseers, GM would become, as some have dubbed it, Government Motors, with the government holding a 50-percent stake.
The last few days of negotiations have shown us the future of government control of major sectors of the economy. In Chrysler’s case, banks beholden to government are coerced to take write-downs to “save” an automobile company that the government will rescue and turn over to one of the Democratic Party’s most loyal constituencies, Big Labor. Those debt-holders who don’t agree to a bad deal are vilified as “greedy” and, rest assured, bad things will happen to them in terms of investment losses.
I don’t want government to succeed in nationalizing American industry. I will not buy a car from the government and I won’t invest in banks that its agents control.