http://www.mylot.com/w/keywords/bond+holders.aspx MyLot Discussions About bond holders en-gb http://www.mylot.com/w/discussions/2020589.aspx Back in the 1960’s there was a time of New Math being taught in the schools. I remember my parents struggling to explain it to my younger brother. The rest of us had to memorize the basic addition and subtraction facts and the Multiplication Tables forward and backwards. My brother was taught the New Math and even had a tutor to help him. My parents were told not to make him learn the basic facts or the Multiplication Tables it would only confuse him. It seems that President Obama has come up with some new math for the GM Bail Out. I was reading an AP story about the Bond Holder now wanting to settle with GM under the president’s plan. According to the story the Government would get 50% control of the company for forgiving $10 billion in debt, the United Auto Workers (UAW) would get 39% control for forgiving $20 billion in debt while the Bond Holders (whom the president and others have called greedy and self centered) would get 10% control for $27 Billion in debt. As I try to understand the New Obama Math it goes something like this: 1. 17.5% of the Debt = 50% Control of the Company 2. 35% of the Debt = 39% Control of the Company 3. 47% of the Debt = 10% Control of the Company It might do the President well to be careful who he is calling greedy. Tue, 26 May 2009 11:04:03 GMT bobmnu http://www.mylot.com/w/discussions/1995890.aspx If you listen to President Obama and read the New York Times it seems as though the American People won and the Greedy Hedge funds people lost. This is how it should be in President Obama's perfect world. In the real world the losers were the retired people who bought the bonds to pay them a regular interest payment for 10, 15, 20 or what ever time they choose and to keep their principal safe. Under this plan the Retired Union Member not only get to keep their pension s but they gain control of the company. The Federal government and Canadian Government bet some say in the company. The banks will use your tax money to forgive the loans and the bond holders will be the big losers. The people with private pension plans that invested in the Bond Market will also lose. Most pension plans, the closer to retirement you get, will invest more heavily in bonds. Bonds being more secure than stock and they generate an income. One question that was not answered was who controls the Pension Fund? It seems to me I remember several years ago GM wanted to have the Union Pension Fund invest in GMAC to provide money for consumers to buy new cars. The Union Refused. Are we bailing out the Union's mismanagement of the pension funds? Fri, 01 May 2009 16:47:08 GMT bobmnu