The View From 1776
Wednesday, May 27, 2009
My Sentiments Exactly
Dennis Bucholtz is a retired dye-making trade worker who labored in the auto industry, but not as a member of the socialist, syndicalist UAW. Much of his retirement income depends upon his investment over the years in GM bonds.
Mr. Bucholtz hits the nail squarely on the head:
The government’s proposed restructuring plans benefit one class of retirees at the expense of another. I understand that we each have equal claims in bankruptcy. However, under the current plan GM’s union retirees will receive 39% of the restructured company and $10 billion in cash in exchange for $20 billion in claims. Bondholders, however, receive a mere 10% for $27 billion in claims in the form of stock (and no cash).
This egregious example of favoritism for insiders is crony politics of the most corrupt kind. It is understandable only as a protection racket payoff to organized labor, one of the Democrat/Socialist Party’s two main sources of campaign contributions.