A rock and a hard place, that's where we are. Bailing out these entities goes against all of our economic beliefs, not doing it may set off an avalanche of problems we don't want to face. I don't know what is the best thing to do.
Something tells me that we ought to let'em fail and together we will have to face the music, figure a new way out. Do we believe that there are never to be hard times, that we are not to pay for bad policies, mistakes, and unwise consumerism?
Hasn't Delta already filed for Bankruptcy? I thought they had, if so, that gave them a way to restructure and try to rebuild. Perhaps some of these companies would do better to face the music, go through a tough period like you say Doug, and not ask for the tax payers money to help them out. Maybe bankruptcy isn't the answer for all of them, but maybe it could be for some of them.
Chapter ll bankruptcy (special law for corporations) is available for all of these companies. Chapter 11 allows them to stay in business while they reorganize. I see no need for the government to bail them out.
Delta did go through chapter 11 and came out all the stronger for it. It does allow companies to continue recieving revenue building cash reserve while putting off or avoiding incurred debts, renegotiating union contracts and business deals. Remember, I was with Eastern Airlines the day they changed from Chapter 11 to Chapter 13 and ceased all operations. They shut off the phones and sent everyone home with nothing but the shirts on their backs. Eastern was based in Atlanta and although 10s of thousands lost their jobs the world did not come to a dead stop. Just as it did not when Obama was elected. I say let them fail or liquidate and we will see that the world still turns, the rooster still crows in the morning and the cows will still come to the barn to get milked that evening.
I agree with you all. The banks are one thing. The auto industry another. I am not sure that banks can begin to fail without more severe repercussions than the auto industry. If banks go down, everything begins to crumble and our very trust of the system becomes undermined.
I think we have a choice with the auto industry but not with the banking industry. We must now increase regulation.
7 comments:
Who are the biggest Turkeys, the companies, the government bailing them out, or the CEO's who still walk away with million $ salaries?
A rock and a hard place, that's where we are. Bailing out these entities goes against all of our economic beliefs, not doing it may set off an avalanche of problems we don't want to face. I don't know what is the best thing to do.
Something tells me that we ought to let'em fail and together we will have to face the music, figure a new way out. Do we believe that there are never to be hard times, that we are not to pay for bad policies, mistakes, and unwise consumerism?
A thought: if it were (and it could be someday) Delta Airlines, would we think differently knowing that both Nick and Brian are involved?
Hasn't Delta already filed for Bankruptcy? I thought they had, if so, that gave them a way to restructure and try to rebuild. Perhaps some of these companies would do better to face the music, go through a tough period like you say Doug, and not ask for the tax payers money to help them out. Maybe bankruptcy isn't the answer for all of them, but maybe it could be for some of them.
Chapter ll bankruptcy (special law for corporations) is available for all of these companies. Chapter 11 allows them to stay in business while they reorganize. I see no need for the government to bail them out.
Delta did go through chapter 11 and came out all the stronger for it. It does allow companies to continue recieving revenue building cash reserve while putting off or avoiding incurred debts, renegotiating union contracts and business deals. Remember, I was with Eastern Airlines the day they changed from Chapter 11 to Chapter 13 and ceased all operations. They shut off the phones and sent everyone home with nothing but the shirts on their backs. Eastern was based in Atlanta and although 10s of thousands lost their jobs the world did not come to a dead stop. Just as it did not when Obama was elected. I say let them fail or liquidate and we will see that the world still turns, the rooster still crows in the morning and the cows will still come to the barn to get milked that evening.
I agree with you all. The banks are one thing. The auto industry another. I am not sure that banks can begin to fail without more severe repercussions than the auto industry. If banks go down, everything begins to crumble and our very trust of the system becomes undermined.
I think we have a choice with the auto industry but not with the banking industry. We must now increase regulation.
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