Tuesday, December 02, 2008
Let Them Fail
What would happen if the big three had to declare bankruptcy? They would immediately have protection against creditors while they worked with a bankruptcy court judge to restructure. Part of that restructuring will be getting rid of the corporate fat; part will be cutting wages; and a big, big part will be cutting benefits to retirees. I think that, more than anything, is what is giving them trouble staying viable. The unions looked out for themselves so much, and used so much muscle against management, that the unions have made the company non-viable. Blame management for caving too easily; blame the unions for taking such a short term approach to salary plus benefits.
Let them fail. I see no consequences of enough significance that tax money would be needed to prevent those consequences from happening.
Again, it seems Americans cannot take economic pain anymore.
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