Time for Chrysler’s bondholders to man up and move on

By Felix Salmon
May 4, 2009

Joe Weisenthal is upset that the UAW seems to be getting the upper hand over hedge funds and vulture investors:

If we’re thinking about the future, we’d much rather ensure that the notion of bondholder seniority and the rule of law is preserved rather than ensuring that institutions of industrial workers known as unions are preserved.

I could go on at some length about how unions really are necessary to the continued survival of the Detroit auto industry, even if they haven’t been used at Japanese-owned car factories in southern states. But really it’s easier to just quote TED:

Here’s a clue for the novices in the room: It’s called politics, you fucking morons. Stop being such a bunch of whiny pansies.

The holdouts didn’t sway the Obama administration, and it doesn’t look like they’re going to have much more luck in bankruptcy court, either: holders of fully 90% of Chrysler’s bonds are now on board with the government’s deal. It’s over. You lost. Move on.

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