From The Christian Science Monitor:
Polls show Americans prefer bankruptcy over a bailout for troubled US car companies and President Obama has now partially and reluctantly accepted.
He has let Chrysler file for Chapter 11 and soon may be forced to let General Motors do the same. In both cases, Mr. Obama is learning why government should not necessarily impose political concerns on what should be a business or legal decision.
His attempt to avoid a Chrysler bankruptcy failed Wednesday because his proposal favored the United Auto Workers over the company's small investors, such as teachers' pension funds. The UAW, while it has made sacrifices in wages and benefits, would have been given more than half ownership of the firm – a far larger share than it deserves under Chapter 11.
Now a bankruptcy judge will be able to treat all stakeholders more fairly, as the law requires, without favoring the politically powerful, such as the UAW.
1 comments:
Been driving Dodge, Plymouth and Chrysler going on 25 years...
..silly me!
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