About Those ‘Speculators’ . . .

Remember how President Obama blamed Chrysler’s bankruptcy filing last month on “a small group of speculators” who turned down Treasury’s $2 billion final offer for their $6.9 billion in debt? Well, it turns out that hedge funds and other short sellers weren’t the only secured creditors who got a raw deal from Uncle Sam.

Indiana Treasurer Richard Mourdock revealed this week that his state’s police and teacher pension funds have lost millions of dollars in the Chrysler “restructuring.” Indiana’s State Police Fund and Major Moves Construction Fund, which finances roads and bridges, together lost more than $1 million. And the Teacher’s Retirement Fund “suffered, at a minimum, a loss of $4.6 million due to the action of the Federal government,” reports Mr. Mourdock.

Far from being speculators, these funds represent retired public employees, including cops and teachers. The funds paid a premium to buy “secured” status, only to discover that they were politically outranked by the United Auto Workers in the White House hierarchy.

1 Comment

Filed under 0bama, money

One response to “About Those ‘Speculators’ . . .

  1. forest

    Obama is doing a heck of a job of rebranding.

    Government spending is now called “investment”.

    What we used to know as “private investment” or “capital” is now known as “speculation”, and it’s bad.

    “Risk” was something taken on by bold people who developed and built the wealth of this country. It came with occasional failure, but also large rewards.

    Now Obama spits out the word “risk” like it is something beneath contempt. He uses “recklessness” and “risk” interchangeably. He is successfully demonizing risk, and by doing it, he’s demonizing capitalism.

    I used to think Obama was something like Jimmy Carter, but it’s becoming clear he’s much worse.

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