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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (44973)	8/19/2010 3:30:37 PM
From: TimF	Read Replies (2) \| Respond to of 71588

Not all bankruptcies without some huge infusion of cash are so much slower. But then its quite possible it would be. In the mean time the company would still (at least if it needed to) stop payments on debt, the debt couldn't be enforced against it while the bankruptcy is still ongoing (except perhaps debt with specific collateral backing, and maybe not even that, and my understanding is that most of it has no such backing, it was general corporate bonds). Or to put it more simply, a slower bankruptcy doesn't change all that much. The company still stops paying it debts, it still continues to operate, etc. Its not like all of this hasn't been done before with large companies. Also private capital might have been forthcoming, if it wasn't for the government's obvious political interest in the case. In the context of the government's interference any private infusion of capital would have had to be done by fools (or perhaps by someone the government favored to a very strong extent). And once again even if you accept the debatable proposition that a large government bailout was needed to save the company, and also the debatable proposition that if such a bailout was needed that it should be done, well then once the government does the bailout it gets the power in the situation, that's very normal, but the way it exercised the power was not, and was inappropriate.