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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (438038)	12/4/2008 10:00:24 AM
From: i-node	Read Replies (2) \| Respond to of 1573696

Would you buy a car from, say, BMW if you thought they were going bankrupt within two months? This issue keeps coming up and the answer is that RATIONAL people would much sooner buy a car from a GM in bankruptcy than one which is reliant on the federal government for handouts. A GM reliant on handouts is going to continue to have the union deals that have brought them to this place. A GM that is in bankruptcy will have the strong arm of the court to strike down these contracts made, in effect, under duress. Thus, GM has a much greater chance of surviving via Chapter 11 than it does with a government handout. So, thinking people (and I agree there aren't too many) will comprehend that a GM in Chapter 11 is probably safe to buy from but one receiving government handouts probably has its days numbered.

To: Road Walker who wrote (438038)	12/4/2008 10:09:17 AM
From: Taro	Read Replies (1) \| Respond to of 1573696

Would you buy a ticket from UAL while in Chapter XI? Obviously a lot of people did since it still is very much alive and kicking! In Europe companies belly up, finito, nada, it's all over. In the US, however, and this in spite of what some people like to believe and even promote in the media, Chapter XI is a very useful instrument for the purpose of renegotiating debt and contracts with vendors, banks - and unions. Assuming that all the big 3 went into Chapter XI, you may well be right in as so much that not all 3 would come out of it again. But then again, do we really need 3 large automoble companies in the US? Taro