Sunday, May 10, 2009

Obamessiah is Wrong

Cliff Asness, founding principal of AQR Capital Management which runs $20 billion, savaged President Obama for his attack on hedge funds during the Chrysler bankruptcy process. It's exceptionally well-written. The key point:

The President's attempted diktat takes money from bondholders and gives it to a labor union that delivers money and votes for him. Why is he not calling on his party to "sacrifice" some campaign contributions, and votes, for the greater good? Shaking down lenders for the benefit of political donors is recycled corruption and abuse of power.

As for the arrogance of this administration I would draw attention to the comment by White House spokesperson Robert Gibbs this week: "We cannot rule out management changes after the stress-tests."

Specifically as Obamessiah executed Rick Wagoner at GM, they won't hesitate to execute bank and finance company CEOs.

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