The media is full of discussion about huge organizations that are being bailed out with taxpayer money because they are “too big to fail”. According to the arguments, letting a General Motors, a CitiGroup, or any of dozens of other compnies fail would result in unacceptable consequences in terms of the economy and job losses.
What I wish someone would talk about is whether these mega-corporations are really too big to fix. Rather than putting them on public life support, would it be better to let them slip away into history?
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March 12, 2009 at 9:54 pm
Every major airline except WN and AA has been through bankruptcy at least once since the mid-1980s, some as many as three times. People kept on flying and the companies stayed in business, stronger than ever. Why can’t the automakers do the same? A managed, orderly bankruptcy with pledges of Federal support for pensions and other critical obligations might be the best thing that ever happened to the automakers.
March 19, 2009 at 2:44 pm
Good points, though I think at least one of the airlines that went through that process has come close to needing it again.