Real damage being done to credit markets
From the WSJ:
What do you think that this will do to the willingness of people to lend?
That conclusion would upend a longstanding tradition concerning rights in a bankruptcy: Senior secured lenders usually get paid in full before lower-priority creditors get anything. Not this time.
The White House's role in restructuring Chrysler has sent a shudder through the community of lawyers and lenders in the field of bankruptcy and corporate workouts. Critics complain that the administration has violated a bedrock principle of American capitalism and unfairly demonized financial firms that are vital to the functioning of the economy and its eventual recovery. . . . .
What do you think that this will do to the willingness of people to lend?
Labels: bailout
posted by John Lott at 9:35 PM
3 Comments:
Hey Professor John, maybe you can tell us if the credit markets are being damaged, the following might be one of the results: with and without a recovery plan?
Seizing and politicizing the banking system is just the first step of the Communist Manifesto.
Judges worried about "empathy" instead of law are another.
Nationalization of major industries is another step in the Communist Manifesto.
And some wealthy Barack supporters now find his delicious promises of the campaign to be realities...and wonder what they have done.
There is no a single thing in Barry's history that would suggest any of the above would be a surprise. If anything, he is more a hard-core lefist than he has been able to show off so far.
No ownder some of the rixh are so easily conned by the likes of a Madoff. They just aren't that bright or serious about what they think and why.
Obama is really for 'change': to change the greatest republic in the planet into a banana-republic. It's the credit markets, credit card regulation, health care, judges with "empathy" (how pathetic can it get?). Get ready to be poorer. The GDP per capita will be 10-25% lower if he has his way.
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