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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: EL KABONG!!! who wrote (295)4/20/2003 11:37:49 AM
From: mishedlo  Read Replies (2) of 4905
 
Bailout but at what price?
At what cost to who?
The airlines were "bailed out" as well. Did that stop bankruptcy?
Just because they go bankrupt does not mean they go out of business.
Look at Kmart and WCOM.
Why can't F go bankrupt and still stay in business.
By allowing bankrupt companies to stay in business it just puts pressure on the others. Now WCOM has debt taht is wiped clean and a competitive advantage over other carriers if I am not mistaken because of it.

If F goes bankrupt but stays in business, how much competitive advantage will they have (pricing power - no debt to pay back) over GM. Under this scenario a bankrupt F might be the death bell for GM. The problem being there is too much worldwide capacity for auto production.

As for right now... What would a "bailout" of F constitute anyway? Doesnt a bailout occur when a company is floating just abpve BK with stock nearly worthless?

M
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