“The Chrysler deal, midwifed and financed by the government, does upend the traditional order and sets a precedent that, were it to be repeated, would be dangerous.”

Or this one. “First, the bank lenders always could have opted out. Chrysler employees couldn’t.”.

If bank lenders had opted out who would have financed this PUBLIC company? Autoworkers could have quit, and walking away from an overpaid union job is their only liability. Debt holders (who for the most part are other pension plans (Read teachers, firefighters, state pensions) are taking it in the shorts at the expense of the UAW.

This is another great quote. “Finally, secured debt holders’ argument that they’re getting the shaft relies on their belief that the true value of the bank debt is worth more than what the government was offering.”

Let me put this in context. You have a cow. Because people are hungry, the state proposes to kill your cow and feed your neighbor. The government values you your cow at one dollar, and proceeds to give you the dollar and take your cow. Now you have no cow but you have one dollar. So to feed your family you have to spend the dollar to buy beef from your neighbor who the government just gave your cow to. Amazing.