American auto industry hurts investors ' hearts

Liu Honghua Washington reported that Chrysler recently filed for bankruptcy protection and plans to sell some of its best assets to Italy's Fiat Motor Company. Chrysler eventually sought bankruptcy protection, which was triggered by the failure of creditors to agree to a debt reduction agreement. But why did the creditor Choufso refuse to agree? The most fundamental reason is that the debt-cutting agreement has hurt the investor's heart. Because according to the government's claim, creditors have 6.9 billion of dollars in debt, can only be set at a maximum of 22. 500 million dollars, and the rest was forgotten.　　Banks bailed out by the government, but hedge funds will not agree, and Chrysler's bankruptcy protection is a foregone conclusion. Chrysler's plight may just be a prelude to a bigger GM's fate. Fritz Henderson, GM's new chief executive, has repeatedly hinted that bankruptcy protection is the best option for GM and probably the only option.　　As one of the clearest signals, GM's six executives have dumped their general stock--a common stock that once priced near $100 trillion, now priced at $1 trillion, and may be worthless in a few days. Once GM seeks bankruptcy protection, ordinary shareholders must be wiped out and their creditors are bound to cry without tears. But creditors are in no better position to avoid bankruptcy.　　According to the government's current restructuring script, GM's $27 billion trillion of debt can only be converted to 10% per cent, with the union gaining a 35% per cent stake to replace GM's promised $10 billion trillion in health-care spending. Will the creditors agree?　　If not, it is likely that the eventual bankruptcy court will be harsher, and that the Obama administration is more likely to accuse them of "speculating" and blaming them for GM's woes, but if it does, it is a big loss. It may not be realistic for creditors to expect equal treatment with trade unions. For the creditors, the return of this bad debt is not to shake the foundation, but for a hard life of workers, this money can be the rest of the rest of the dependence.　　Moreover, Obama's democratic government, one of the main supporters of industrial workers, the Obama administration will certainly not be the slightest effect on workers ' rights. GM has been relegated to the current position, and creditors have been blamed for failing to notice the risks involved in lending money. But ignoring creditors ' rights too much, the Obama administration will have new problems.　　Since the government's money is limited after all, to get out of the current economic crisis, the government's current propaganda campaign is to encourage more private investment to help. On the one hand, hurt the investor's heart, on the other hand, and turn to investors, this "again horse run, cake" good, in the market economy of the United States, in fact, it is difficult to do, even if the surface, it may bring long-term sequelae.　　The Washington Post has also issued an editorial warning that the Obama administration must be cautious about investor rights, "and that the US economy needs these private investors," as a commentary on "The road is hard ahead". If AustriaThe Obama administration really wants to protect the legitimate rights and interests of creditors, what are the alternatives? That is to continue to open taxpayers ' pockets and inject more money into GM and Chrysler. This will also lead to a rebound in taxpayers and public opinion.　　The Obama administration has been burned to the rescue of AIG and the subsequent AIG "Bonus gate", and is fully exposed to the outrage over the government's "generous taxpayer" subsidy to Big Macs. How to balance the interests of investors and taxpayers, without damaging one's interests and causing greater trouble, is clearly testing the Obama administration's current capabilities. And it could be a long test.