May 06, 2009
How Much is that Voter in the Window
The great thing about the internet is that if you keep looking long enough, someone will write something that crystallizes a concept to perfection. Sometimes, as in the case of this piece by Michael Barone, they do so without even noticing or commenting. Writing on the strong-arm tactics of what he calls our "Gangster Government" Barone wrote this describing the reaction of politicians to bondholders who don't want to be taken to the cleaners (emphasis added):
Why is it more of a problem that UAW members aren't getting what they negotiated than secured debt holders not getting what they negotiated? The answer is a simple matter of numbers.
There are more UAW members and retirees at Chrysler than secured creditors.
Why waste money buying the votes of a few hedge funds when you can use that money to buy the votes of large labor union.
Michigan politicians of both parties joined Obama in denouncing the holdout bondholders. They point to the sad plight of UAW retirees not getting full payment of the health care benefits the union negotiated with Chrysler.
Why is it more of a problem that UAW members aren't getting what they negotiated than secured debt holders not getting what they negotiated? The answer is a simple matter of numbers.
There are more UAW members and retirees at Chrysler than secured creditors.
Why waste money buying the votes of a few hedge funds when you can use that money to buy the votes of large labor union.
Posted by: Stephen Macklin at 11:35 AM | No Comments | Add Comment
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