Let Them File for Bankruptcy

Anthony H.N. Schnelling's picture

Provide a fresh start for ailing companies within an organized system.

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Anne Lawton's picture

Chapter 11 is not liquidation. Filing for bankruptcy does not mean that GM goes out of business.

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Newton L. Gingrich's picture

The answer is an old fashioned one: (they) should choose between receivership or bankruptcy.

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WSJ Opinion Journal's picture

Only bankruptcy can force Detroit to change.

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Michael J. de la Merced's picture

...bankruptcy will finally allow G.M. to save costs and more effectively bargain with its various counterparties...

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Alec P Ostrow's picture

chapter 11 will likely be used in conjunction with a bailout.

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Too Big to Fail

Jack R. Nerad's picture

Bankruptcy puts a damper on consumer confidence and vehicle demand.

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Philip J. LeBeau's picture

The real crisis brewing in the industry swirls around the auto parts suppliers.

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Steve Lohr's picture

The technology is beginning to appear to make us think very differently about cars

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boris.steffen@naviganteconomics.com's picture

...the Big Three have made significant strides in resolving their problems outside of a formal bankruptcy proceeding.

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Mike Cox's picture

a loan -- not a bailout

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Schuyler Carroll's picture

The parties should understand that the time for negotiation is here and they can no longer wait...

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Your Opinion

Which is the best option for the US auto industry?

Bailout
12% (13 votes)
Bankruptcy
88% (100 votes)
Total votes: 113
Date published: Jan 09, 2009

Is Detroit manipulating congress to get a bailout?

Yes
88% (81 votes)
No
12% (11 votes)
Total votes: 92
Date published: Jan 12, 2009

Is a bailout justified by the potential impact of industry failure on the secondary automotive markets?

Yes
30% (24 votes)
No
70% (57 votes)
Total votes: 81
Date published: Jan 12, 2009

Should the government own a stake in bailed out auto makers?

Yes
60% (44 votes)
No
40% (29 votes)
Total votes: 73
Date published: Jan 12, 2009

Issue 1



See all of Issue 1 'Bankruptcy or Bailout?'
See all of Issue 2 'Mortgage Cramdown'

Date published: Jan 14, 2009

Let Them File for Bankruptcy

John D Penn's picture

There are two primary problems with any governmental “bailout”

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J Cohen and J Agiesta's picture

Poll Finds Most Blame Industry for Problems, Believe Failure Won't Hurt Economy

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Todd J. Zywicki's picture

In short, Detroit and the public have little to fear from a bankruptcy filing...

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Jeffrey Werling's picture

North America is the automotive world’s largest and most dynamic market

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Robert Hale's picture

The bailouts, approaching $8 trillion, are rewarding misfeasance, malfeasance, and poor judgment.

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Andrew M. Grossman's picture

The bankruptcy process is designed to confront and resolve complex problems.

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Daniel J. Ikenson's picture

The U.S. auto industry needs a shakeout, not a bailout. What we are witnessing is an attempted shakedown.

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Paul Ingrassia's picture

In truth, GM already has conceded that it's bankrupt -- by publicly stating it's nearly out of cash...

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David Reilly's picture

What is clear is that the loans are no guarantee these companies will survive.

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Matthew J. Slaughter's picture

There are at least three important ways an industry bailout could damage America's engagement in the global economy.

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Too Big to Fail

Bret Weiss's picture

This gives the auto manufacturers “cover”...

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Peter A. Brown's picture

Should the government insist on conditions...?

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Barney Frank's picture

The President is correct in rejecting bankruptcy because that would hinder, not help, our effort

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Matthew Dolan's picture

...a failure of [GM or Chrysler] could imperil their shared base of auto-part suppliers

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John Hughes's picture

There will be rigorous oversight to make sure that these companies are doing what they promised to do.

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Barney Frank's picture

I am pleased that the Administration will provide critical bridge financing for these companies.

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Nicholas D. Kristof's picture

... when conditions are so fragile, we can’t risk a staggering blow to the national economy ...

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Jon Hilsenrath's picture

An actual bankruptcy filing may amplify the risks of liquidation.

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Jon Basil Utley's picture

A quick bankruptcy is impossible. Chapter 11 would take years to unfold, during which time the companies would lose unrecoverable market share.

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Timothy Aeppel's picture

Car makers tend to buy individual parts from single sources, making disruptions more problematic.

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Your Opinion

Does the auto industry need new management?

Yes
98% (80 votes)
No
2% (2 votes)
Total votes: 82
Date published: Jan 12, 2009

Will bankruptcy by any of the Big 3 destroy the auto industry?

Yes
15% (8 votes)
No
85% (45 votes)
Total votes: 53
Date published: Jan 09, 2009

Should Ford ask for a bailout if it may not need it?

Yes
11% (4 votes)
No
89% (31 votes)
Total votes: 35
Date published: Jan 09, 2009

Will the auto industry fail even with a large bailout?

Yes
76% (34 votes)
No
24% (11 votes)
Total votes: 45
Date published: Jan 09, 2009

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