As with most socialist and fascist government, intimidation and threats are often used as a tactic to get business on board. They following article is Opinion;
JOHN LOTT: Thugs In the White House
By John R. Lott, Jr.Senior Research Scientist, University of Maryland/Author, Freedomnomics.
So much for any hope that the government would uphold rules and abiding by contracts. Instead, we keep getting examples of something else – that when President Obama fails to persuade firms to follow his wishes, he does not hesitate to use threats of financial destruction.
Cliff Asness, the co-founder of the $20 billion hedge fund AQR Capital Management, laid bare the latest attacks with an open letter on Wednesday:
“The President screaming that the hedge funds are looking for an unjustified taxpayer-funded bailout is the big lie writ large. Find me a hedge fund that has been bailed out. Find me a hedge fund, even a failed one, that has asked for one. In fact, it was only because hedge funds have not taken government funds that they could stand up to this bullying. The TARP recipients had no choice but to go along.”
This is just the latest in a string of intimidating tactics starting with threatening costly public audits to get compliance. Then there were the threats of firing CEOs who had the audacity to oppose government plans. The very latest is threats to use “ the full force of the White House press corps [to] destroy [the firm Perella Weinberg's] reputation” if it resisted the government stealing their money, according to Thomas Lauria who represented the firm up until last week. ABC News’s Jake Tapper reports that Mr. Steven Rattner, the head of the auto task force, made the threat.
The White House has been pushing hard to nationalize the automobile companies. While bondholders and the government have loaned similar amounts each to GM and Chrysler, the White House feels that the government should get 50 percent ownership of GM and the creditors about 10 percent.
The Wall Street Journal reports that unions are also being given stock that should be going to the creditors – 39 percent of GM and 55 percent of Chrysler.
Most of the financial institutions holding these bonds have gone along with Obama’s nationalization of the car companies for a simple reason – the government has already nationalized them and they do the government’s bidding. As ABC News and the Wall Street Journal note: JP Morgan Chase, Citigroup, Morgan Stanley, and Goldman Sachs have been given up to $100 billion by the government. The irony is that the feds gave these financial institutions money because they were hemorrhaging financially and now the government orders these same institutions to throw away money and take loses that no private company would voluntarily do. Not surprisingly, with this waste, there is talk that Citigroup may need another $10 billion from the government.
Full Article: http://foxforum.blogs.foxnews.com/2009/05/08/lott_chrysler/
"Most Bad Government results from too much Government".......Thomas Jefferson