The hedge funds tried to push Obama too hard in the Chrysler negotiations, and he decided to push back. Result: bankruptcy. Not the best outcome in this case, but an excellent prelude to future negotiations.
So the hedge fund guys thought they had Barack Obama over a barrel, and decided to play tough in the Chrysler negotiations. Obama, looking forward to other negotations, decided to play tougher. He’s been reading his Machiavelli, and also his Neustadt. Good!
Author: Mark Kleiman
Professor of Public Policy at the NYU Marron Institute for Urban Management and editor of the Journal of Drug Policy Analysis. Teaches about the methods of policy analysis about drug abuse control and crime control policy, working out the implications of two principles: that swift and certain sanctions don't have to be severe to be effective, and that well-designed threats usually don't have to be carried out.
Drugs and Drug Policy: What Everyone Needs to Know (with Jonathan Caulkins and Angela Hawken)
When Brute Force Fails: How to Have Less Crime and Less Punishment (Princeton, 2009; named one of the "books of the year" by The Economist
Against Excess: Drug Policy for Results (Basic, 1993)
Marijuana: Costs of Abuse, Costs of Control (Greenwood, 1989)
View all posts by Mark Kleiman