Tuesday, November 18, 2008

What He Said

General Motors CorporationImage via WikipediaThe New York Times believes GM should do a pre-packaged bankruptcy too.

"G.M is using money so quickly that a $10 billion infusion made today would disappear by February. That is why taxpayers shouldn’t fork over a cent, at least until shareholders are wiped out, management is tossed out and the industry is completely reorganized...

First, let’s recognize that G.M. doesn’t need life support. What it needs is Chapter 11. The bankruptcy process is not a bad thing — indeed, it should be embraced. Bankruptcy allows companies to do tough things they could never do in the normal course of business. It has helped many companies turn themselves around and come out even stronger."

This is one of the best editorials I've read in a while.
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