investment strategies(?)
Posted: June 29th, 2005, 5:39 pm
"chapter 11 means that put option on pensions and healthcare the government offers gets excercised"This is very important right now for the GM and airlines situation. The unions for GM and airline companies have essentially been granted a free option by the US Gov't to pillage their employers. The union members receive pension and healthcare benefits regardless of whether or not their demands put their employers in financial jeopardy. Add to the mix the fact that GM and airline companies can't threaten to dump union employees for either political, legal, or PR reasons, and you get what you have: Stock and bondholders get the shaft.