I am trying to figure out what kind of thinking this post from Kevin Drum represents:
According to people "familiar with the talks," several of Chrysler's bondholders have rejected the government's deal, which amounted to paying them off a little more than 30 cents on the dollar. So that means it's probably Chapter 11 time. Blecch. I hope the holdouts all end up getting less from the judge than they would have gotten from Obama.
There is only one possible reason** for Obama's attempt to avert a Chrysler bankruptcy -- he is trying to divert value from one group who would get it under a bankruptcy to another group. There can be no other explanation for what he is trying to do, and in fact evidence is pretty strong that he has been trying to get creditors to take less so unions, who supported his election, can get more.
What has happened is that creditors have refused to get bullied by this near-unprecedented intervention by a US President in a bankruptcy case and are holding out for what they feel is the best way to recover as much as possible of what they are owed (no one is coming out whole). In this context, Drum's pique really seems petty. Rather than press for the money they are legitimately owed, the creditors should have bowed down, I guess, to the King's wishes and given up their money to those courtiers who were smart enough to back the King's coronation.
What Drum is probably most upset about is that it is now clear that both Bush and his guy Obama have spent tens of billions of dollars of taxpayer money to absolutely no end, just delaying a bankruptcy that would have been better for economic recovery if it had happened six months ago.
** There is one other explanation -- Obama may feel like he is better able to mediate a bankruptcy than a bankruptcy court and judge with decades of experience in the field. I hope this kind of hubris is not the case, but for this administration it is very possible. Obama is every bit as unaware of his inability to achieve his goals through shear force of will in domestic policy as GWB was in foreign policy.