This morning, John Mackelroy, the automotive analysis for the all news station ( who has a Sunday show on the automotive industry) puzzled over this same sourness of the deal for Daimler. Daimler must be compensated in some other way.
Overall , is this GM taking over Chrysler ? In the direction of monopolization of the Big Three, from Three to Two. Or a victory of American auto capital over German auto capital ? Charles ^^^^^^^ I'm trying to make sense of the Cerberus takeover of Chrysler. The private Equity firm is getting Daimler only $1.3 billion not much of a return for the original $36 billion that Daimler paid for Chrysler. The restive Cerberus $7.4 billion goes to a $5 billion investment in Chrysler and $1.05 billion for the financial arm. I do not understand this $1.05 billion since its lending arm is already Quite profitable. Finally, pension funds are investing in Cerberus, as a company that will no doubt damage the existing pensions of Chrysler workers. -- Michael Perelman ^^^^^^^ CB; Maybe there is an interlocking directorate between Cerberus and Daimler( Chrysler ?) You described a while ago how another private equity firm stripped a company sort of "in broad daylight". This sounds similar. We need a steep tax on hedge funds and private equity funds, like 90% of "profits". That last word will have to be chosen carefully. Probably have to use ten words. Interest, fees , penalties, securities, securitized loans, debts,debintures, stock, bonds,rent, monies, money, capital, profits, commercial paper, revenues,hedge fund revenues, you get the picture
