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Obama angers hedge funds
WAshington Post ^ | Mahy 1, 2009 | STEVEN MUFSON and TOMOEH MURAKAMI

Posted on 05/02/2009 5:17:14 AM PDT by libstripper

President Barack Obama’s harsh attack on hedge funds he blamed for forcing Chrysler into bankruptcy this week sparked cries of protest from the secretive financial firms that hold about $1 billion of the automaker’s debt.

Hedge funds and investment managers were irate at Obama’s description of them as “speculators” who were “refusing to sacrifice like everyone else” and who wanted “to hold out for the prospect of an unjustified taxpayer-funded bailout.”

“Some of the characterizations that were used … to refer to us as speculators or to say we’re looking for a bailout is really unfair,” said one executive who spoke on condition of anonymity because of the sensitivity of the matter. “What we’re looking for is a reasonable payout on the value of the debt … more in line with what unions and Fiat were getting.”

(Excerpt) Read more at chron.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: bankruptcy; bho44; chrysler; hedgefunds; obama
Look at the comments once you read the article. Even the Washington Post's readers get the idea that Obama has no business forcing revisions of private securities contracts.
1 posted on 05/02/2009 5:17:15 AM PDT by libstripper
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To: libstripper

Chernobyl is a great example of what happens when the government runs...anything.


2 posted on 05/02/2009 5:21:22 AM PDT by Past Your Eyes (When the going gets tough, Democrats switch sides.)
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To: libstripper

When will the ‘little guy’ realize he will be screwed eventually? So frustrating!


3 posted on 05/02/2009 5:23:33 AM PDT by synbad600
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To: libstripper
Did someone say "secretive?"


4 posted on 05/02/2009 5:25:22 AM PDT by 1rudeboy
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To: libstripper
From 2006.....

Chelsea Clinton joins New York hedge fund Avenue Capital Group founder has been big contributor to Democrats

5 posted on 05/02/2009 5:26:28 AM PDT by mewzilla (In politics the middle way is none at all. John Adams)
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To: libstripper
Hedge fund Manager


6 posted on 05/02/2009 5:27:27 AM PDT by Vaquero ("an armed society is a polite society" Robert A. Heinlein)
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To: libstripper

Not enough pie.


7 posted on 05/02/2009 5:30:35 AM PDT by MARTIAL MONK (Not enough pie.)
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To: mewzilla
So what Obama did was along the lines of Dick Cheney shooting a major donor.

We need him to do more of this stuff because it's about time the rich people who support Democrats find out what's going to happen to them.

8 posted on 05/02/2009 5:31:28 AM PDT by muawiyah
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To: libstripper

HOW DARE THEY CRITICIZE DEAR LEADER!!!!!


9 posted on 05/02/2009 5:32:25 AM PDT by Anti-Bubba182
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To: libstripper

Perhaps, some people are finally reaching their limits obama.


10 posted on 05/02/2009 5:34:38 AM PDT by Kakaze (Exterminate Islamofacism and apologize for nothing.....except not doing it sooner!)
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To: synbad600
When will the ‘little guy’ realize he will be screwed eventually? So frustrating!

Its not just the little guy; its the entire economy.

Bonds are absolutely essential to economic growth. Without bonds there is little or no investment. What Obama has done is to change the status, through government, coercion, of bondholders from ultra secured to essentially unsecured.

Why would anyone want to buy bonds in the future, knowing their status can be changed at the whim of the president.

Look for money to flow out of bond funds soon. Obama's reckless action will further tank the economy.

11 posted on 05/02/2009 5:35:42 AM PDT by CharacterCounts (November 4, 2008 - the day America drank the Kool-Aid)
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To: muawiyah
We need him to do more of this stuff because it's about time the rich people who support Democrats find out what's going to happen to them.

I'm sure they'll oblige. Sigh.

Meanwhile, while we're on the subject of hedge funds, on a related note....

Chelsea Clinton's Vineyard wedding

12 posted on 05/02/2009 5:35:59 AM PDT by mewzilla (In politics the middle way is none at all. John Adams)
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To: libstripper

Maybe the fools at the Washington compost read part of the rise and fall of Hitler? Scary parallels?


13 posted on 05/02/2009 5:36:10 AM PDT by Issaquahking (Keep your change obummer, I STILL support Sarah!)
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To: Kakaze
Imagine, this much revelation about ZERO in just 100 or so days. He only got another 1350 or so days to go!

Go ZERO Go, Go ZERO Go, Go ZERO, Go, Go ZERO Go...

14 posted on 05/02/2009 5:41:19 AM PDT by harpu ( "...it's better to be hated for who you are than loved for someone you're not!")
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To: libstripper

Who the HELL will stay in Bonds now?????


15 posted on 05/02/2009 5:43:16 AM PDT by Ann Archy (Abortion....the Human Sacrifice to the god of Convenience.)
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To: libstripper

Meanwhile, Michelle My Belle wears 500 dollar sneakers! Way to sacrifice! Rules for thee but not for me, sayeth the dictator.


16 posted on 05/02/2009 5:45:31 AM PDT by TheConservativeParty ("Government is not reason, it is not eloquence, it is force." George Washington)
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To: Ann Archy
Corporate Bonds....used to raise cash to GROW and OPERATE their BUSINESSES!!!

So NOW WHO in the HELL would buy these kind of Bonds???? NO ONE!!!

17 posted on 05/02/2009 5:46:24 AM PDT by Ann Archy (Abortion....the Human Sacrifice to the god of Convenience.)
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To: muawiyah

Note: Cerberus was the major investor in Chrysler. Cerberus was run by the billionaire reclusive Stephen A. Feinberg, a Democrat donor. Feinberg invested in many companies along with J. Ezra Merkin, the former head of GMAC. Merkin has been charged in the Bernie Madoff scandal. Coincidence after coincidence.


18 posted on 05/02/2009 5:48:53 AM PDT by Melchior
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To: CharacterCounts

You might add that bonds are purchased because they are secure. A bond holder becomes a secured creditor just as a lien holder is a secured creditor.

You buy stocks on a bet but you buy bonds for security.

A bond hedge manager or any trustee who gives up that security is guilty of fiduciary mismanagement because he has willingly given away money which is not his but rather belongs to his investors and will no doubt suffer penalties.


19 posted on 05/02/2009 5:51:32 AM PDT by old curmudgeon
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To: Ann Archy
If you listen to Glenn Beck, (No investment advice from him or me here) are options are limited.

Muni's are under a blanket Moody's warning. Treasuries, when do the Chinese pull that rug. Stocks? Look what we went through lst year, and now the attack on "capital", via bondholder at the end of the line. Banks, they have been "TARP-ed". What is left, CD's at Credit Unions?

20 posted on 05/02/2009 5:51:52 AM PDT by taildragger (Palin / Mulally 2012)
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To: libstripper

comments here are very informative too, now looking for a negative rally in the bond market, exactly like the Stimulus bill did for the economy, negative growth, but the media can leave out the negative for Ødumba’s ratings


21 posted on 05/02/2009 5:53:49 AM PDT by Son House (Make A Bad Situation Worse, Raise Taxes, Increase Government Spending, Thanks Øbama)
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To: CharacterCounts

bttt


22 posted on 05/02/2009 5:54:16 AM PDT by petercooper (1/20/13 - Change I can believe in.)
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To: Ann Archy
I wonder if it has occurred to the Chinese that Obummer, the Marxist, could decide that paying out 100% face value on treasuries is optional?

If that thought ever crosses the mind of the Chinese, life will indeed get interesting.

23 posted on 05/02/2009 5:56:03 AM PDT by old curmudgeon
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To: CharacterCounts

That’s what I mean! People have no clue that this will bite them in the ass. Maybe later before sooner, but eventually.


24 posted on 05/02/2009 5:56:12 AM PDT by synbad600
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To: libstripper

As a general rule these hedge fundie geniuses donated to Obama and voted for him big time. For them to turn around and act all surprised and hurt at his actual policies is quite hilarious. Are all their other predictions equally good?


25 posted on 05/02/2009 5:57:29 AM PDT by Dr. Frank fan
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To: libstripper

Bambi has ticked of the goose that laid the golden eggs now ...bambi keep it up, son, you will find you aren’t the judge and jury after all


26 posted on 05/02/2009 5:57:49 AM PDT by yldstrk (My heros have always been cowboys--Reagan and Bush)
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To: libstripper

Government has the King Midas Touch. Everything they touch turns to chit.


27 posted on 05/02/2009 5:57:51 AM PDT by Piquaboy (Military veteran of 22 years in Navy, Air Force, and Army.)
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To: CharacterCounts

You are absolutely dead on. Moreover, many times these bonds and other once called “secured” debts were the financial instruments owned by the so-called little guy through pension funds and IRAs, etc. So, before anyone thinks too bad for the ‘hedge fund’ think again. You’re all getting ripped off.


28 posted on 05/02/2009 6:00:40 AM PDT by cthemfly25
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To: TheConservativeParty

I recall that she sneered *what can you buy with $600? A pair of earrings?* when the stimulus money was first sent out. I guess we know something else now!

My parents bought their cemetery plots with that money, by the way; it allowed Daddy to be buried in a Veterans Cemetery with military honours, which was his hearts desire.


29 posted on 05/02/2009 6:02:22 AM PDT by Appleby
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To: libstripper

I can’t help but think that all those little Wall Street preppies who blindly and ignorantly voted for Obama are getting their just desserts. The amount of money he raised from hedge fund managers was enourmous. Now the chickens have come home to roost. As much as I hate to see it happen and as much as I am opposed to it, there is something poetic in all this. I sure would like to line up all those hedge fund idiots who voted for Obama and one by one slap them and make them apologize.


30 posted on 05/02/2009 6:03:47 AM PDT by Juan Medén
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To: yldstrk
This is really scary.

Obummer, the Marxist, is a lawyer. Lawyers know exactly what a secured creditor is and why that class of creditor exists.

He knows what the law is in regard to secured creditors.

Yet he made those comments about bond holders.

This should make it clear to anyone who had any doubt that Obummer, the Marxist, is totally devoid of character.

As for Wall Streeters who voted for Obummer, the Marxists, they are getting what they deserve.

Not like the dog who chased the car and caught it, but like the dog who chased the car and got under the rear wheel.

31 posted on 05/02/2009 6:05:50 AM PDT by old curmudgeon
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To: Melchior

Oh, darn ~ do you think President Biden knows this? (Bwahahahahaha!!!!!!!!)


32 posted on 05/02/2009 6:15:17 AM PDT by muawiyah
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To: synbad600
Now I know the media love to portray all hedge fund managers as fat cat Republicans in the Monopoly game piece mold but a little perspective here;

I live in Greenwich, Ct. home of the hedge fund. This elecrtion Paul Tudor Jones a multi-billionaire hedge fund guy held a fundraiser at his mansion for Obama attended by many other hedge fund guys including Soros. Many, many of the hedge fund managers are rich, Jewish guys and as we all know for some strange reason a huge percentage of Jews voted for Obama and for that matter any democrat that runs.

Beside Obama, Chuck Schumer receives the largest donations from Hedge funds. One clue as to why they receive such favorable tax treatment.

Greenwich used to be rock solid Republican now almost every BMW, Mercedes, Land Rover I pass has an Obama bumper sticker. Forget the Whole Foods parking lot it looks like a Dem convention with every car in the lot sporting the Obama stickers. And, for the first time in my life a Democrat won the majority votes in the Presidential election.

So while I don't cotton to class warfare crap I can't say I'm not feeling just a slight tingle up my leg that these "Democrat" fat cats are getting their just deserts for being just that much smarter than we knucle dragging, unenlightened Republicans who couldn't quite grasp Onamanomics!

33 posted on 05/02/2009 6:18:23 AM PDT by marlon (Does anyone know the precedure for impeachment for a teleprompter?)
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To: Dr. Frank fan

Yep, on Wall Street you’ve got to believe there’s more than a little buyer’s remorse. Many of these clowns contributed and voted for all this hope and change. These guys thought sitting at the top of the food chain they’d get a special seat at the table, and some of them undoubtedly have and will. But, I’m guessing now the rule of law sounds a little better than the hype for some of these firms holding GM and Chrysler debt.


34 posted on 05/02/2009 6:19:24 AM PDT by bereanway (Sarah get your gun)
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To: mewzilla

John Edwards was involved w/ a hedge fund also.


35 posted on 05/02/2009 6:28:15 AM PDT by Vinnie (You're Nobody 'Til Somebody Jihads You)
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To: libstripper
...said one executive who spoke on condition of anonymity because of the sensitivity of the matter because he fears the anger of the king.
36 posted on 05/02/2009 6:33:37 AM PDT by Yardstick
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To: libstripper

Weren’t some of these ‘hedge funds’ his biggest contributors??? Hmmm! Ah sweet justice.


37 posted on 05/02/2009 6:41:08 AM PDT by Don Corleone (Leave the gun..take the cannoli now reads "Oil the gun..eat the cannolis.")
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To: marlon
Paul Tudor Jones a multi-billionaire hedge fund guy held a fundraiser at his mansion for Obama attended by many other hedge fund guys including Soros.

I wonder what percentage of the Dem managers were short the market. I know Soros specializes in the short side.

38 posted on 05/02/2009 7:12:40 AM PDT by what's up
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To: marlon

Be that as it may, and I certainly don’t care if the fools who voted for O get their comeuppance, nay, I’m all for it to a degree, but aren’t you just a little bit worried that some of your investments, IRAs, etc. are affiliated with these funds?


39 posted on 05/02/2009 8:36:27 AM PDT by synbad600
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To: marlon

Your observation is so accurate. Where I’m from a plant closed last year ( a long standing viable facility) ...suddenly and without warning and without paying the employees. The plant was bought and owned by some shady investor banker types from Chicago who capitalized on all sorts of state economic development money only to close soon after receiving it. They were attempting to flip the business-—expand it with huge debt and then sell it. Those so-called investors were Obummer supporters. Chicago visited our heartland so to speak and brought misery.


40 posted on 05/02/2009 10:23:16 AM PDT by cthemfly25
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