U.S. political risks grow in financial crisis

[Chuckiechan]

Business Feed Article | Business | guardian.co.uk

* Some investors see arbitrary government intervention
* Could eventually lead to money flowing elsewhere
* Investors may seek risk premium, raising business costs

The USA is getting like Venezuela. Nothing like a little boost in interest rates to smooth out the Messiah's march to "trickle up poverty"

[pickel]

Business Feed Article | Business | guardian.co.uk



The USA is getting like Venezuela. Nothing like a little boost in interest rates to smooth out the Messiah's march to "trickle up poverty"

President Barack Obama's attack on Chrysler debtholders who oppose the plan -- he described them as "speculators" who had endangered the automaker's survival -- only underlined the idea the government had no time for alternative views.
Billionaire Warren Buffett said in a CNBC interview this week that, while he was sympathetic to the argument that a few debtholders should not try to scuttle a restructuring of such national importance, he thought there would be "a whole lot of consequences" to sacrificing lender priorities.
The fear that rules can change midstream -- and contracts investors thought were valid are no longer seen as sacred -- can drive up risk premiums, experts say.
"Investors want to know what the rules are so they can determine whether opportunities are profitable or not," said Jaret Seiberg, a financial services policy analyst at brokerage firm Concept Capital.
And it is not only Chrysler that is seen as an example of the government suddenly changing the rules.

Kinda like the Corporations that shut down plants and betray their workers when these people who work and sweat want a little bigger piece of the pie. Those $ 2,000,000+ bonuses leave a sour taste in the mouth of a man trying to raise a couple of kids.

Everyday life's a crap shoot. I propose we donate some cheese to go with their whine