Posted by
Jack Cruger on Tuesday, May 26, 2009 12:48:29 AM
Obama the Magic Dragon: He makes 401(k) plans, and pensions 90% disapear.
This is a letter I sent to the Congerssmen who represent my district. Every body who reads this Blog should send one to their Congressmen. Feel free to copy this one and send it.
Letter to U.S.Rep.Brown, U.S. Senators Graham, DeMint;
Many mutual funds, 401(k) plans, pensions, and insurance companies contain some automaker’s debt, and will lose up to 90% of its value if Obama's Auto Task Force has its way.
The Administration's Auto Task Force has ignored small bondholders, senior citizens, and (current and future) retirees in discussions over the automaker solvency. With the Administration in the driver's seat, they have offered small bondholders only cents on the dollar, which would impact millions of American's pensions, savings, college funds, and retirement accounts.
Bonds are loans, not speculative stocks, but the Administration is proposing that holders of automaker’s debt will receive $0.10 on the dollar for their holdings while the United Auto Workers (UAW) union and the Federal Government will receive 89% of the equity in the restructuring.
This is just another unintended consequence, or intended, of the Obama Administration, just like the Credit Card bill. The Credit Companies will start charging interest from the day of purchase which will punish the people who pay in full and on time as well as the ones who think they are getting a break. It sounds like the whole Senate and House bought into this one.
Government intervention is getting way out of hand and you guys have to find a way of stopping it. I can only hope the voters across the country understand what is going on and vote accordingly in the mid-term elections.