President-elect Barack Obama signaled last week that even if Congress does not bailout Detroit’s Big Three this month, he will push for federal help once he is sworn in. But it appears that at least some Democrats on Capitol Hill are warming to the idea of a much needed bankruptcy … More

SNL hit a homerun with their opening skit this weekend hitting Congress and the Big Three on the inevitable auto bailout. The best exchange is between Fred Armisen (as Barney Frank) and Will Forte (as GM CEO Chuck Wagoner): Frank: Uh, Mr. Wagoner as I look over your proposal it … More

A major reason the Big Three auto makers can’t turn a profit as they are currently organized is due to the generous union contracts they signed years ago. As you can see below, the Big Three are paying about $25 more per hour than their domestic competitors: So what happens … More

Great catch by Brian Faughnan over at Red State. He flags this Barney Frank interview with NPR: But let me ask you about the first thing you said, Congressman, because you said you don’t think $25 billion is enough. Right, I’m trying to explain to you how it works. OK. … More

Bankruptcy expert and George Mason University School of Law professor Todd Zywicki makes a concise case for why GM must enter bankruptcy before the federal government gets involved: GM (or the others, but I’ll use GM to illustrate the point) presents an unusually good case for Chapter 11 reorganization. GM … More

Failure is a part of U.S. business culture. That is why Americans feel extremely comfortable buying tickets from bankrupt airlines, electronics from bankrupt retailers, and apartments from bankrupt builders. To paraphrase a popular bumper sticker: bankruptcy happens. Bankruptcy does not have to be the end for any business. Instead bankruptcy, … More