Diary

Bankruptcy Is An Option

A compromise package designed to extend $14 billion to the Big 3 automakers has failed to achieve cloture in the Senate. Good, I say. Again, there is no reason why bankruptcy should not be an option for the Big 3 and given the fact that bankruptcy is a more predictable and less dramatic process than is a government bailout–which will likely be followed by another government bailout in a few months–it should be the preferred option. Other companies in other industries–the airlines come to mind–have declared bankruptcy but continued their operations, reorganized and came back stronger for the effort. The Big 3 can do the same.