The bankruptcy signals that Obama is prepared to play hardball with holdout lenders rather than knuckle under to their demands and will likely set the tone for similar discussions with bondholders of General Motors Corp — which is now on the clock to restructure its operations by the end of May.
While Obama voiced his support for Chrysler and the deal with Fiat, he was pointed in his criticism of the investors who did not agree to this deal.
“I don’t stand with them. I stand with Chrysler’s employees and their families and communities,” the president said. “I don’t stand with those who held out when everybody else is making sacrifices. That’s why I’m supporting Chrysler’s plans to use our bankruptcy laws to clear away its remaining obligations.”
I’m writing this stuff and starting to feel a bit like John Pinnette “who stole the food!?”
Corn rose as much as 3.5 percent, and soybeans, wheat and rice gained. The Midwest floods probably will cause “hundreds of millions of dollars” of damage, according to the National Weather Service. U.S. corn stockpiles may fall 53 percent to a 13-year low before next year’s harvest, the USDA said June 10.
High food prices “are here to stay” as governments divert resources to make biofuels, amass stockpiles and limit exports, Peter Brabeck-Letmathe, chairman of Nestle SA, the world’s largest food company, said in an interview in Kuala Lumpur today.
It’s looking more and more like transportation and storage costs are going to drive the cost of food basics up and up. By food basics I’m referring to grains, roots and vegetable crops. Those food items that require transportation in large quantities. Even local gardens are being hit hard by the weather this year, some people planning to weather any serious food price issues with home garden may need to put forth more concrete solutions, like sturdy greenhouses for year-round food production.
Suburbanites, like myself are really starting to feel the pinch of the ever-rising gas prices. Trips to visit my Parent’s house have started to stretch into the 40+ dollar mark for each trip. 40 Dollars is about my normal meat and vegetable budget each week. It’s not like I can’t afford it, but I do have to make choices now about how to spend my wages.
Add to all of this the budget crunch of debt and many of us might be looking at food uncertainty in the next year.