Muscatine

May 4 (Bloomberg) -- I feel like I have seen this bad gangster movie before.

In the opening scene, a naive investor buys some bonds, explaining to his staff that they are a sound investment secured by hard assets. Even if the company goes under, the investor explains, bond investors stand to get about 80 percent of their money back.

The next day, a government official calls and offers to buy up the bonds at 33 cents on the dollar, while giving controlling interest in the company to the labor unions. The investor refuses. That night, a man shows up at his home.

"We're not saying anything bad is going to happen to you," the tough says, "but the big boss is going to be very disappointed in you if you don't take the deal. By the way, how's your little girl? Is she still going to school down on Federal Street?" The investor caves.

The evolution of the Chrysler LLC bankruptcy seemed almost as bad. The Obama administration brokered a deal that gave labor unions a 55 percent equity stake in Chrysler, putting their interests ahead of the secured interests of bondholders.

The bondholder response to the deal was positively creepy.

link [www.bloomberg.com]

Union pay off of 55% of Chrysler.....bleed a company to death, and obummer will give it to you.

It appears to me, that the time for the unions are past.  Let them have 55%, then, the future of the Company will be in THEIR hands!  Remember what happened to Thatcher Plastic Packaging, HOPEFULLY these folks at Chrysler will understand that sometimes it's more important to keep the Company going, by trimming down their excessive wages so that THEY can make a profit at the end of the year.  Isn't it funny that you haven't heard ANYTHING about Fiat for about 30-40 years, and now all of a sudden they're in the mix of bailing out some of these Companies?  Shackman