Who Is Going To Notice Anyhow?

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The problem with one trick ponies is that they get old quickly. It appears that the present administration's one trick pony is short-term gains at the expense of long-term credibility. So, we should barely be surprised when, true to form, precisely the investors needed to get the PPIP program off the ground are savaged from the bully pulpit and bullied by a natty puppet.

Hedge fund manager George Schultze says he may avoid lending to any more unionized companies after being burned by President Barack Obama in Chrysler LLC's bankruptcy.
Obama put Chrysler under court protection on April 30 after lenders balked at a proposal giving them about 29 cents on the dollar for their $6.9 billion in debt. The investors said the president's plan favored a union retiree medical fund whose claims ranked behind them for repayment. It was offered a 55 percent equity stake in the automaker.
Pacific Investment Management Co., Barclays Capital and Fridson Investment Advisors have joined Schultze Asset Management LLC in saying lenders may be unwilling to back unionized companies with underfunded pension and medical obligations, such as airlines and auto-industry suppliers, because Chrysler's creditors failed to block Obama's move. The reluctance may put additional pressure on borrowers seeking capital in the worst financial crisis since the Great Depression.
"Lenders will have to figure out how to price this risk," Schultze, 39, said in a telephone interview from his office in Purchase, New York. "The obvious one is: Don't lend to a company with big legacy liabilities or demand a much higher rate of interest because you may be leapfrogged in a bankruptcy."

Since we have debunked Capitalism, we are sure that would never happen.
Fund Managers Burned by Obama Now Say They Are Wary [Bloomberg]

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