You Can Take a Chicago Thug out of Chicago,...

In his harsh attack on hedge funds, Obama blamed them for forcing Chrysler into bankruptcy. Quite rightly as it turned out they, the funds, protested. Then he, BO, characterized them as “speculators” who were “refusing to sacrifice like everyone else” and who wanted “to hold out for the prospect of an unjustified taxpayer-funded bailout.”

But, as usual, any politician’s words aren’t worth much and this occupant of the Oval Office proves it every day. George Schultze, managing member of the hedge fund Schultze Asset Management, a Chrysler bondholder, said, “We are simply seeking to enforce our bargained-for rights under well-settled law. Hopefully, the bankruptcy process will help refocus on this issue rather than on pointing fingers at lenders.”

The president’s harsh criticism may play well on Main Street, but it flopped on Wall Street where some privately run funds that invest in an unlimited variety of securities and which theoretically balance different kinds of risks — are part of the landscape.

“It sounds like people are being bullied right now,” said Ron Geffner, a partner at the law firm Sadis and Goldberg, which represents hedge funds. “To play the ‘I stand with Chrysler, I stand with families, I stand with the dealers, I stand with the consumers’ — that’s great conceptually, but … I stand with the fact that we live in a capitalist society where companies who don’t modify their business plans and stay current die and go by the wayside.”

Geffner then added that Obama’s remarks made it difficult for the lenders that rejected the offer to speak publicly for fear of appearing “anti-American.” Indeed, a group of lenders issued a statement — but did not identify its members. The group said it included “20 relatively small organizations” that represented “teachers unions, major pension and retirement plans and school endowments who have invested through us in … loans to Chrysler.”

The funds hold about $1 billion in Chrysler bonds and have turned down the government’s terms. The government would have paid under a third of the value of those bonds. However, many funds bought the bonds at discounts from other investors who feared the bonds might ultimately be worthless.

Now, you can do your own research on all of this and, if you do, I’m sure you’ll find pretty much the same stuff that I found. Obama is a bully. That should not be so surprising considering his background and also considering his “cohurts”. No, I spelled it right.

Consider his threat when the bank CEO’s went to the White House where he told them, “I’m all that stands between you and the pitchforks”. Or when his goons in ACORN sent death threats to the AIG board or when the same private army organized bus tours of AIG executive homes.

There is a lawyer called Tom Lauria who acts for some of these hedge fund clients and I’ll let you follow that little trail of breadcrumbs but he tells a chilling story.

There were only two winners to emerge. The UAW which in a masterly coup gained 55% of Chrysler assets via presidential decree and Obama who was one step closer to a destruction of this country's private sector.

The bottom line on all of this is that the habits engrained in early training whether it’s via a Jesuit elementary school or via the streets of a brutal political and criminal environment die hard, if ever.

But at the end of the day, Chicago thugs do what they've always done. The weapons may change but the brutality doesn't and nor does the intent.