Pages

April 01, 2009

‘Controlled’ GM bankruptcy could be uncontrolled disaster

Word is that the Obama Administration is looking at driving GM into a controlled bankruptcy to then split the company into two parts, with the more desirable parts being sold to a government-financed company.

Sounds good at first, no?

But…

Who decides what is “more desirable”? Who prices this stuff?

If you’re thinking this sounds like Treasury Secretary Tim Geithner’s TALF idea, well, you might not be alone.

Theoretically, it should be easier to choose winners and losers within a traditional manufacturing industry, but who knows?

No comments:

Post a Comment

Your comments are appreciated, as is at least a modicum of politeness.
Comments are moderated, so yours may not appear immediately.
Due to various forms of spamming, comments with professional websites, not your personal website or blog, may be rejected.