Abu Wabu

Pension and benefits giant Chrysler is filing for bankruptcy after a multi-billion dollar FAILURE by Obama to rescue the company's vestigal auto manufacturing arm and make himself CEO using taxpayers' money.

Who would have guessed the Messiah could fucking FAIL in his quest to become Chairman of Everything before he even got going? It was a scant four months ago that he was rejecting bankruptcy proceedings for Chrysler and GM, opting instead to begin "reshaping America" by buying government control of the corporate sector with taxpayers' money. But that clearly (clear to everyone but Obama, that is) wasn't going to work, so now the Messiah has "reshaped" his thinking: he has finally figured out that Chrysler couldn't be rescued without private-sector investment, so he's stealing that private-sector investment and giving Chrysler to the unions:

Its ownership would be divided, with the company's union retiree health fund receiving a 55 percent stake, Fiat would claim as much as a 35 percent share and the United States would take 8 percent. The Canadian government would receive two percent.

The automaker's current majority owner, the private-equity firm Cerberus Capital Management, would have its holdings wiped out.

Of course, even after stealing private investors' money, Obama couldn't resist slagging those eeeevil capitalists who kept Chrysler afloat for four months, paying salaries and suppliers to the tune of a billion or so while He was using it as His personal entree into the Office Of The President Of All I Survey. But they're not going away quietly:

In a statement published on The Wall Street Journal Web site, the recalcitrant bondholders said they sought an accommodation with the government.

"Under long recognized legal and business principles, junior creditors are ordinarily not entitled to anything until senior secured creditors like our investors are repaid in full. Nevertheless, to facilitate Chrysler's rehabilitation, we offered to take a 40% haircut even though some groups lower down in the legal priority chain in Chrysler debt were being given recoveries of up to 50% or more and being allowed to take out billions of dollars. In contrast, over at General Motors, senior secured lenders are being left unimpaired with 100% recoveries, while even GM's unsecured bondholders are receiving a far better recovery than we are as Chrysler's first lien secured lenders," the group said.

The statement added: "Our offer has been flatly rejected or ignored. The fact is, in his process and in its earnest effort to ensure the survival of Chrysler and the well-being of the company's employees, the government has risked overturning the rule of law and practices that have governed our world-leading bankruptcy code for decades."

Rule of law? There's only one law now, folks, and that's whatever the hell Obama says it is. GM investors know all about it.

How long before investment capital completely dries up under the threat of being stolen by Obama?