Saturday, May 2, 2009

Quote of the day

"Let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That’s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence."

That from bankruptcy lawyer, Tom Lauria commenting on the shaft given to Chrysler bond holders who have been forced to take just pennies on the dollar which is in marked contrast to the far more favorable terms rigged by the Treasury Department for the UAW in the bankruptcy deal.

But in keeping with our inherent bi-partisan nature when it comes to governmental overreach, we saw this played-out in slightly different circumstances and methods when the big banks were essentially forced to take government money back in October of last year under a different presidential administration.

It should be obvious to anyone who has been paying attention that Bailout Nation requires no small amount of arm-twisting, intimidation, threats and general thuggery to keep going. That is because there are still some smart people out there in these private entities who realize that having the government in its back pocket is an impediment to holding on to top talent, operating the business independently and yes, turning a profit.

The President has said he doesn’t have enough time to run the auto industry and while that may be true, don’t ever confuse the day-to-day handling of a business with compelling that business to do your bidding.

H/T: Hot Air

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