Ayn Rand’s prophecy fulfilled

Who else ever imagined such a Big Labor/Big Government swindle as Obama is attempting to perpetrate against GM bondholders? This fraudulent scheme is almost guaranteed to cause another economic meltdown. Ed Morrissey explains:

Even though you own $27 billion in GM bonds, you’d get 10% of the company. The UAW, which has a claim on $20 billion for its health-care and pensions obligations, would only have to sacrifice half of that to get 39%. The feds, who will invest another $9 billion to bring their total investment to the same level as your bonds, wants 51%. . . .
Does anyone at the Treasury do math any longer? The total sacrifice of all three parties would be $64 billion, of which the federal government and the bondholders are contributing the same percentage: 42.2%. The UAW will contribute about 15.6%. Why would the Obama administration expect bondholders to contribute 42% of the solution in order to gain 10% of the company?

Looter tactics straight out of Atlas Shrugged. My advice to anyone owning market mutual funds or stock in a publicly-traded corporation can be summed up in three words: Sell, sell, sell!

Weimar America and Dow 3,000, here we come!

UPDATE: Saw a scroll on the bottom of Fox News saying that GM bondholders have rejected the deal — yea, bondholders! — which explains why the Dow is up, for now.

The “Geithner Motors” scheme of handing over the once-mighty industrial giant to the UAW goons whose greed has bankrupted the company has got to be the worst idea for “recovery” I’ve ever heard.

UPDATE II: Bloomberg, at 11:17 a.m.:

General Motors Corp. fell 8.3 percent to $1.87 for the steepest drop in the
Dow. Bondholders find the automaker’s offer to exchange their $27 billion in
debt for equity unreasonable and said they should be treated more equitably with
labor unions.

A share of GM is now cheaper than a gallon of gas.

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