Can anyone tell me why giving GM & Chrysler a chance to restructure instead of...

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mr_cj_jr

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...bankruptcy is a bad thing? We all know that GM & Chrysler have been run poorly, thus the reason we are where we're at now.

But, what people fail to realize is that we pretty much had to give them a chance to change their ways instead of immediately going into bankruptcy. Reason, because that no only affects GM & Chrysler, it affects suppliers and everyone upstream as well.
So, just letting them go into bankruptcy without giving them a chance would not have been a good move. Plus, the consumer confidence in buying from a bankrupt company would be even lower than it is now.

I commend this Administration for telling them 'No more money' because GM & Chrysler did not hold up their end of the bargain. Sadly, even though they were given a 'second chance', it looks like bankruptcy might end up the way they're going.

So, can anyone tell me why giving GM & Chrysler a chance to restructure instead of bankruptcy is a bad thing?
 
Are you completely retarded? Chapter 11 allows for re-organization and re-structuring.

Chapter 7 is liquidation.

Man you libtards are complete idiots.
 
That's what Chapter 11 bankrupcty is for. They declare Chapter 11, renegotiate the inputs costs/materials costs...and then get back to business (I think that's what Republican's wanted...they weren't seeking Chapter 7 which would require they close their doors). The airlines have done this for years.

And as it stands, the input costs are too high. Even if they produced the best selling vehicle in the world, they'd likely still lose money.

And for giving them a chance? Should we do that for every business that's going through a tough time? Maybe we should offer insurance for stock market crashes too?

Understand business is a risky proposition -- which is why those who own them require a return on their own capital and their time.

Chapter 11 will allow them to alleviate their debt, restructure and then get back to business.
 
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