Wednesday, May 27, 2009

Changing the rules in the middle of the game is rarely a good idea

Elections have consequences.

Dennis Buccholtz:
I purchased GM bonds in 2005 and own $91,000 worth. These bonds account for a very sizeable portion of my retirement income, and so it is absolutely devastating to watch GM's problems bring the once venerable company to the brink of failure. My standard of living is truly in jeopardy.

Despite the terrible position my fellow bondholders and I are in, we are being portrayed as the cause of GM's problems and inability to restructure.

Who is perpetrating this myth? The American government, which is at once encouraging investment in U.S. companies and vilifying those who have already invested. Billions upon billions of taxpayer dollars have been used to stabilize companies to restore investor confidence. But how can investors be confident when they're at risk of ending up on the wrong end of the government's stick?

...

I am a retired dye-making trade worker and even worked in the auto industry during my career. I don't understand why the government is penalizing people like me just for having funded my retirement with GM bonds. Bondholders, especially small bondholders, are being ignored in negotiations and singled out to bear the greatest share of the cost of restructuring GM.

Actions have consequences. The more we see, the more it is obvious that this administration's economic plans cannot possibly improve the economy in this country. The only remaining question is whether the administration believes that it is improving the economy, or whether it's goals are more important - to it - than improving the economy...

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