Dec 03, 2008 7:38 PM GMT
Are they too big to be allowed to fail? In the 1970s the UK government bailed out car companies like British Leyland but they still went bust.
boilerup_82 saidI really hope congress does not bail any of the car companies out. The problem with these companies is not the faltering economy (well, for the most part). A few years ago, when the economy was surging, these firms were losing money. This means that there is something with their current business plan/strategy.
When the CEO's went to DC to beg for a bail out, they made it seem that their bankruptcy will have a profound effect on the US economy. One thing they don't realize is that filing for Ch.11 Bankruptcy protection does necessarily mean they will fold. Filing will allow them to rethink their business agenda and do much needed restructuring.
I'm afraid giving bailing them out will just delay their collapse...