Chrysler's Game Of Chicken

The greedy, unregulated hedge fund industry, the one that shorts the market and makes massive gains on the down side, and shadowy investment bankers are at it again:

President Obama blamed “a small group of speculators” for forcing Chrysler into bankruptcy. “A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout,” Obama said yesterday.

Obama’s team had first offered secured lenders $2 billion for their $6.9 billion in loans, and then raised the offer to $2.25 billion. In a game of chicken, the holdouts asked for $2.5 billion, and Obama’s patience ran out. Now the bankruptcy courts will handle it.

This, after the unions made massive concessions and lenders representing 70 percent of the Chrysler loans agreed to Obama's offered plan. Yet another public relations disaster for Wall Street.

Source: NYT