It’s a dramatic reversal over statements last month, but I am glad to see that the Obama Administration seems to be learning. Bankruptcy is not collapse. It is an acknowledgement of failure with a plan to improve.
As the WSJ puts it: “The Obama’s administration’s leading plan to fix General MotorsCorp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.”
Now only if he will exhibit similar bravery in taking on teacher unions, with their large retiree costs and structural inefficiencies.
It looks like this story was leaked. That means they’re probably sending up a trial balloon. If the idea gets too much blowback, they can drop it down the memory hole at no cost. That’s “bravery”?
Before you praise him for bravery, let’s at least see him get up at a podium and endorse bankruptcy in front of TV cameras.
I’ve been wanting GM et al to go bankrupt for some time now…they really need to for a lot of reasons. Maybe after they do we can drop the import restrictions and tariffs on foriegn cars.
Jay, are you trying to imply that the Homer was a failure?