Update May 4, 2009 – It still amazes me how men who make their money in the business world support the tactics of the Obama administration. They do not agree with his actions, but still support him. I have to wonder about their judgment. In my earlier post, I provided several examples of big-named individuals who support President Obama, BUT spoke a different tune when discussing specifics of his policies.
One of the better known was Warren Buffet. Mr. Buffett was asked some pointed questions about President Obama’s recent challenge to auto industry bond holders who, according to Obama, did not want to do their part. Obama essentially called them out in front of the world even though, contractually, they have preference to being paid back in any bankruptcy procedures. Buffett replied:
“The bondholders want a secure bond. If I have a first mortgage on my house here, and the first mortgage is for half of what the house is worth, and somebody says I want you to take a big haircut because I’ve got credit card debt someplace else, that’s got problems. It has problems in terms of future lending. I mean, if priorities don’t mean anything that’s going to disrupt lending practices in the future…giving up priorities in lending, abandoning that principle, would have a whole lot of consequences…If we want to encourage lending in this country, we don’t want to say to somebody who lends and gets a secured position that that secured position doesn’t mean anything.”
It seems to me that his buddy, Obama, wants to do just that. Contracts and the law do not seem to matter to this administration. There are legal procedures that happen when companies file for bankruptcy unless Obama disagrees or wants to protect one of his constituencies.
In addition to calling out the bondholders who would not do his bidding, it has been alleged that the Obama White House threatened to use the press corps against the bondholders. Bankruptcy attorney Tom Lauria, who represented several of the holders, raised this serious allegation.
“One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.”
I am sure that is what our founding fathers had in mind for the “free” press. They meant for them to do the bidding of the president, to be his lapdog. Is it any wonder that Americans do not trust the mainstream media? How does the media accept the fact that they are merely a cog in the Obama machine. They are an embarrassment.
Getting back to Buffett. Where are all of the business leaders in the country? They seem to be standing by as politicians are gaining power and taking America down the tubes. Are they that intimidated by this administration?
Forget about “Who is John Galt?”
WHERE IS JOHN GALT?
You may read my original posting here.