Skip to comments.Obama angers hedge funds
Posted on 05/02/2009 5:17:14 AM PDT by libstripper
President Barack Obamas 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 automakers debt.
Hedge funds and investment managers were irate at Obamas 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 were looking for a bailout is really unfair, said one executive who spoke on condition of anonymity because of the sensitivity of the matter. What were 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 ...
Chernobyl is a great example of what happens when the government runs...anything.
When will the ‘little guy’ realize he will be screwed eventually? So frustrating!
Not enough pie.
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.
HOW DARE THEY CRITICIZE DEAR LEADER!!!!!
Perhaps, some people are finally reaching their limits obama.
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.
I'm sure they'll oblige. Sigh.
Meanwhile, while we're on the subject of hedge funds, on a related note....
Maybe the fools at the Washington compost read part of the rise and fall of Hitler? Scary parallels?
Go ZERO Go, Go ZERO Go, Go ZERO, Go, Go ZERO Go...
Who the HELL will stay in Bonds now?????
Meanwhile, Michelle My Belle wears 500 dollar sneakers! Way to sacrifice! Rules for thee but not for me, sayeth the dictator.
So NOW WHO in the HELL would buy these kind of Bonds???? NO ONE!!!
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.
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.
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?
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
If that thought ever crosses the mind of the Chinese, life will indeed get interesting.
That’s what I mean! People have no clue that this will bite them in the ass. Maybe later before sooner, but eventually.
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?
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
Government has the King Midas Touch. Everything they touch turns to chit.
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.
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.
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.
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.
Oh, darn ~ do you think President Biden knows this? (Bwahahahahaha!!!!!!!!)
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!
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.
John Edwards was involved w/ a hedge fund also.
Weren’t some of these ‘hedge funds’ his biggest contributors??? Hmmm! Ah sweet justice.
I wonder what percentage of the Dem managers were short the market. I know Soros specializes in the short side.
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?
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.