The economy is going to slip further no matter what happens. If the big three is forced into bankruptcy it will force them to face the problems they have been avoiding and make the necessary adjustments to stay in business or fail. People who work for them had better start working on a backup plan instead of waiting for the government to rescue them. Their failure would also open up other markets for companies who do have plans that work and may bring other auto companies here to do business. It will definitely mean the UAW will have to renegotiate or go the way of the passenger pigeon.

 

If they are going to get loan money for operations as the "bailout" suggests, I think it should include provisions for a Chapter 11 type of restructuring to insure that the proper steps are taken to repay the loans in a timely manner.

Well, as of today, it isn't looking too good for them to get that loan money.

Then they should reorganize under Chapter 11

That very well might be the correct course for them to take. Anyway we slice the pie, the loan would be only a Band-Aid and they'd surely be back for more sometime in the early spring. I think we can all agree on this point.

Chapter 11 is the ONLY way they can get out from under the bad debts and contracts that are crippling them - by court order - and restructure to become competitive in today's environment under the watchful eye of a bankruptcy judge able to re-define the terms is necessity dictates.     Congress can't do any of that.     The airlines came out stronger after Chapter 11; why can't the Big 3?

They must fail so long as they're paying those non-productive, but contractual "legacy costs" the UAW is holding them to.      Any "bail-out" will simply pay for so many more months of operating expenses, and not sell a single extra car.    Then they'll be back for more.     The only question is when they'll turn to Chapter 11 - not "if"!