Friday, December 12, 2008

Stiglitz Says Let Them Go to Chapter 11

Joe Stiglitz is certainly a prolific writer. His latest article pushes for the Big 3 to enter bankruptcy. Doing so will force the companies to restructure and perhaps start producing cars people will want to buy.

Stiglitz recognizes the likelihood that the companies will need some money from us. Bankruptcy will make the money go further as it would also very likely lower costs - retiree obligations and interest payments - and we shoukd be able to get a better deal.

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