Bankruptcy Still Best
Posted January 13th, 2009 at 10.08am in Enterprise and Free Markets.
Heritage analyst Andrew Grossman will be discussing the auto bailout with Wall Street Journal Former Detroit Bureau Chief Paul Ingrassia, Competitive Enterprise Institute General Counsel Sam Kazman, and Mackinac Center for Public Policy Senior Economist David Littmann. The panel can be seen live here at 10:30, and will also be available for viewing afterward.
Here’s a quick preview of Grossman’s thoughts on the subject:
Bankruptcy Law Exists for a Reason
With recent job losses across the economy, lawmakers are understandably nervous to subject themselves to the charge that they have allowed further business failures, and more job losses, to occur on their watch. But this charge is easily rebutted, for it misunderstands the role of bankruptcy law in revitalizing businesses. Properly understood, reorganization in bankruptcy represents the best chance for General Motors and Chrysler to survive and prosper.
- Author: Conn Carroll
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January 13, 2009 Ozzy6900 writes:
When a company or person winds themselves into the hole of debt to a point where income cannot pull them out, Bankruptcy is the correct way to go. As one who had to go the route of personal bankruptcy many years ago, it is at times the only way to salvage oneself. It is not a pretty way to go but when all else fails or as in the case of the auto industry, you run yourself into the ground, it is the only way out.
We already have seen that the 1st bailout did nothing for the Big 3 and they already admit that they will be looking for more! So where will it end? If you keep feeding money into a fire, it only burns to ashes and becomes worthless. Why has no one asked why Honda, Nissan and even Hundai are not looking for a bailout? Because they make cars that people want and are willing to invest in. Somebody better wake up in Washington!