Wednesday, May 13, 2009

WSJ: Chrysler and the Rule of Law

An excellent piece from WSJ:

Chrysler and the Rule of Law
Bondholders will price government interference risk into bonds, especially junk bonds and bonds with companies that have a lot of unions. This raises the cost of capital and reduces the likelihood of any recovery based on credit expansion. Why lend if you can be cut out of your legally entitled recovery by King Obama?

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