Wednesday, December 10, 2008

Chapter 11

Why do we need Congress to Fix the Big 3. Here's a comment I picked up recently that hits to the heart of the matter.

Nancy Pelosi calls the deal a barber shop, where everybody will take a haircut.
There is already an available process for operating companies that cannot meet their obligations where all the parties take a haircut: Its called chapter 11. We have about a zillion man-years of experience with it, in companies great and small. And it does not take idiotic Senators flashing billions of our tax money to mediate it.
The auto industry is tremendously magnetic for wannabee technocrats in Congress, in large part because in perhaps no other industry is there a bigger gap between what the average American wants
to buy and what the country's intelligentsia things they should buy

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