Let's ask congress to help! Here's why I believe bailing out Worldcom is a right thing to do.
1. Telecommunication is very important strategic asset for our country.
2. WorldCom is not Enron. Worldcom's data network is carrying data that is vital to the business, education, and defense.
3. Varies parts that compose of today's WoldCom has been, is, and will be value creators. WorldCom as a whole, properly restructed, will be a good value creator. The $3.8 billion improperly accounted expense, nevertheless, was not value destroyed, but was transfer of wealth from WorldCom to other telecommunication companies receiving the cash.
4. Forcing Worldcom into bankruptcy will only result in undesirable wealth transfer. Those stand to loss are pension funds, individual investors (by direct share ownership or through mutual funds). Those that will beneafit from bankruptcy of WorldCom will be Lawyers, ...
5. While WorldCom's ... calls for reform. We need to restore confidence in the financial market, while working on restoring confidence in individual companies. Selectively bailing out companies that have long term viability has very leveraged effect in stablizing the financial market. |
