re: #99 MandyManners

1. Bond holders $28B = 10 per cent
2. Union $10B = 55 per cent
3. TARP Banks $10B = 35 per cent.

In which universe would this be acceptable? I’m no financial wizard but, even I think this stinks.

Yep, what you see was a major attempt at income redistribution from the bondholders to the union and the government owned banks.

Actually, you have to give them credit for being so creative about it. You also have to take into account that the bond holders were primary creditors (first in line to get paid back, and the union and banks were secondary creditors (farther down the food chain to get paid back).

The message this sends to the market is do not even think of trying to work with the government.