The story this morning on April 30, 2009 is that Fiat and Chrysler are posturing to close a deal to have Chrysler go through a quick bankruptcy, to clean out the various problems, and possibly have Fiat take over the company, without Federal government interference, but the Feds are not happy with that, it is assumed because they don’t get the kind of control they got with GM. My feeling is that the Obama machine is holding out for control over the interests of Chrysler bond holders. Chrysler bond holders who will only do well if the company goes through quick bankruptcy and emerges either on their own, or with Fiat as owner bond holders having been given payout of one sort or another. It is my opinion that the union issue is driving the Feds with regard to these solutions. This may be coming down with private enterprise taking the initiatives away from the Feds, and this may bring pressure from Obama administration to fight the private deal making. We know the Feds want the union votes and will want to structure a deal to benefit the unions. That seems to be how the Obama machine functions, it looks for potential political standing with their constitutants in this case the unions. My view is that private enterprise should be the first choice in any options, and if this stalls, then the government can make their solutions available.
The mantle of the Obama administration may be in the lens of ethics on this deal having seen how the bond holders of GM were I believe fed to the fishes. Perhaps the Obama machine players are being one upped on this and it is about time. The continuing shabby operation of the takeover of industrial giants by the Obama administration could be ending with this move. By the end of today, we will probably see what this Obama team is made of. They may attempt to control the deal, and not let the private sector work this out. The question is will Obama interject the feds for the union votes, putting the bond holders at risk? This is clearly political and is a getting Democratic votes strategy for the Obama machine. Obama signals now are that they control the loans in TARP or bailouts, and this is their big stick used to force the deal they want. Is this how we want our Federal Government to be working? I doubt it strongly, but then we have President Obama who believes he is supreme and can do things no other President would dare to attempt because of his “CHANGE” mandate? When are the majority of Americans going to recognize how shabby this administration really is?
Jim the Conservative
