Today's Outrage: GM Bondholders Make Bad Bet on Bankruptcy

Today's Outrage publishes every weekday at 9:30 a.m. EDT and is available as an RSS feed.

I'm baffled by the bad bet bondholders are making on a General Motors (GM Quote) bankruptcy.

Don't they realize that the Obama administration is calling the shots inside or outside the courts? That's how this will play out because the government will be pumping billions of dollars of taxpayer money into the carmaker and will therefore be brokering the bankruptcy terms.

I just can't see what these unsecured creditors think they will get from the courts after rejecting the restructuring offer to swap debt into stock. ...